What generates Economic wealth of Nation?

Transcript

Suppose there are 2 countries A and B Country A Fertile Land More Natural Resources No Industries Sells Raw Material Sells Finished Goods Country B Desert Land Very little Resources More Industries Which Country will be More Rich? Country B Possessing of Natural Resources doesn’t make a country rich It needs to be transformed by a production process What generates Economic wealth of Nation? Economic Wealth of a country does not depend upon possession of resources It depends upon how these resources are used to generate flow of production This Production leads to income and wealth Suppose there are 2 countries A and B Sells Raw Material Sells Finished Goods Country A Fertile Land More Natural Resources No Industries Country B Desert Land Very little Resources More Industries Which Country will be More Rich --> Why? Country B Possessing of Natural Resources doesn’t make a country rich It needs to be transformed by production process What generates Economic wealth of Nation Economic Wealth of a country does not depend upon possession of resources It depends upon how these resources are used to generate flow of production This Production leads to income and wealth