How does remittance affect a developed country's economy?
In the article How does remittance affect a country's economy? we know that remittance can affect not only the poverty countries but also the developed countries as well.
In this essay, FinFan will discuss the effect of remittance on a developed country’s economy.
How to identify developed countries?
Developed countries, advanced countries or industrialized countries are countries and territories whose development level is superior to that of the rest of the world. Expressed through the uniform progress of economic, political and social indicators.
Developed countries include characteristics such as high levels of economic growth and security. The standard criteria for assessing a country's level of development are per capita income, gross domestic product, degree of industrialization, average standard of living, and the amount of public infrastructure. technology.
Non-economic factors, such as the human development index (HDI), which measures a country's education, literacy, and health, can also be used to gauge levels of level of development.
In today's industrialized countries, heavy industry, high technology and services are the three main economic sectors. Industrial countries also have much higher per capita incomes than developing countries. This means that if a newly industrialized country is to be considered developed, its industry must have a much higher share of the same level than the rest. Industrialized countries also have very high human development indexes.
In addition to the title "industrial countries", this group of countries is also known by other names such as "developed countries", "advanced countries", or countries of the First World.
How does remittance affect a developed country's economy?
The reason why these developed nations receive remittance.
- For trading purposes
Trading is very important for every nation in the world. Due to this action, the economy and life of a nation can develop and upgrade to the next level.
Many developed countries like Germany or the U.S. are very developed in the business of machinery, electronic equipment as well as cars.
The remittances they receive from these industries can account for a very large part of the GDP of these countries, typically Germany with a total value of up to 17.4 billion USD.
- For tourism purposes
In developed countries, it will be easy to see ancient European architectural works or some symbolic works such as the Leaning Tower of Pisa, the Eifel Tower, etc. attract most tourists.
Every year many tourists spend a lot of money to travel to these places. They often take selfies on social networks, making the popularity of these places more and more spread, and so every year developed countries receive a lot of remittances from here.
- For educational purposes
These developed countries attract a lot of foreign students to study and work. The annual tuition and living expenses of these international students are all provided by their families from their home countries.
This annual cost can be up to more than 100 thousand dollars for each international student (for the US). In Europe, there is a policy of free tuition for international students.
- For helping families
Some developed countries such as China have much poverty. As in developing countries, the relatives of these poverty people can work abroad and send money back home for them.
Especially in every nation have the Chinese come and lived, they all created a Chinese area called Chinatown of their own, and the people in it have lived and worked together very harmoniously, they set up trading markets to generate more income and often send money back home for family.
Chinatown is also China town is also the inspiration for the future Little Saigon area of Vietnam in the U.S