Hard currencies are currently considered to be U.S. dollars, Japanese yen, and German marks. Since most international obligations must be paid in hard currency, it is very important to have enough exports, which bring in hard currency, to be able to meet foreign obligations. A development strategy in which countries promoted industrialization by protecting domestic industries from competition by imposing high tariffs or quotas on imports. Because the industries protected are not always determined by comparative advantage, they are not always internationally competitive. Services and facilities that support day to day economic activity.
Infrastructure includes roads, electricity, telephone service, and public transportation.
Infrastructure has traditionally been provided and maintained by the government. However, some nations are currently experimenting with privatization of some elements of the infrastructure. The legal protection of patent and copyright laws. The international protection of intellectual property rights has become an issue under GATT because companies are often reluctant to do business in a nation that does not provide legal protection for their patents. Some LDCs are reluctant to provide patent protection because it prevents domestic industries from competing in the field and often keeps prices of products too high for domestic consumers.