Question

Define developed and developing economies. What is the basis of their classification?

Answer 1

A developed economy is typically characteristic of a developed country with a relatively high level of economic growth and security.

A developing economy is not something that can be easily defined, but it basically means an economy that is not as advanced as the rest of the world.

We may classify them on the basis of their per capita incomes.

Developed nations, which can generally be categorized as countries that are more industrialized and have higher per capita income levels.

Developing nations, which is a broad term that includes countries that are less industrialized and have lower per capita income levels.