Like any good capitalistic society, the north wants to get richer. To do so, they must find a way to increase capacities and decrease costs. With unionized workers and environmental laws, it becomes extremely difficult for companies to achieve this goal within their own borders. So they move south, to take advantage of the more favorable climate. However, the jobs that are moving are not for skilled labor but for basic labor, which does not increase the knowledge base of the population.
External dependence is by far the greatest challenge underdeveloped countries face.
The exports of underdeveloped countries taken collectively or separately are mostly farming or mineral goods and their imports are for the most part manufactured goods coming from the industrial countries. In fact, underdeveloped countries depend far more on industrial countries than industrial countries depend on them. Also, underdeveloped countries trade between themselves less then 20 percent of their total exports and imports. Therefore, their internal continental trade structure is less admirable. To do so, they must become more self-reliant as a region.