ECON 201, PRINCIPLES OF ECONOMICS – MACROECONOMICS – DL
DR. Williams Smith

WEEK #13 – GRADED BULLETS

1. Hernando de Soto Polar, in 1989 in his book The Other Path: The Invisible Revolution in the Third World created the term dead capital. He argued that developing countries were poor not because the poor weren't entrepreneurial, but because they didn’t have property rights. So a three part question here: a) what is dead capital? b) how big a problem is it? c) provide an example of dead capital. ( … text Ch 18 and internet) A. Dead Capital- Any capital resources that lacks clear title of ownership. B. It's so hard to know. It's a resource that people cannot allocate to it's use. It among the top impediments of growth per each capita. C. Poor Businesses… Different Assets and Liabilities.. De Soto

2. In 2006, the Nobel Peace Prize went to Mohammad Yunus of Bangladesh for his efforts to create microlenders in the third world (3W). So a two part question: a) what is a microlender and b) why are they needed (… text Ch 18 and internet) A. Microlender is a organization group that creates loans to people who can not obtain finical lenders. B. They are need to provide people with small amounts of capital. They try to help people who can't get it.

3. Does international free trade and foreign direct investment (FDI) take jobs from U.S workers? And if so, what sort of jobs? ( … my lecture) Yes...they do take jobs from workers. They will give them to the poorer nations. Low skilled, low wage, and routine jobs basically.

4. Does international free trade and foreign direct investment (FDI) provide American families with more goods and services for their disposable income? How is this so? And how much extra purchasing power does this represent? (… my lecture). Yes… Because disposable income for american families give them