Answer to Question #238902 in English for John

Question

Explain why it is important to know how countries are classified in your own words right now, in your own words.

Answer 1

Countries are placed into groups to try to better understand their social and economic upshots. The most widely accepted principle is labeling countries as either developed or developing countries. Classification of countries is important because it enables us to know which countries have high, middle, or low economic income rates. Another importance of knowing how countries are classified is to understand the degree of integration into the global financial system of individual countries. Lastly, we view it as important to know how countries are classified in order to understand the level of export diversification which reflects the degree to which a country's exports are spread across a large number of products and trading partners of certain countries.