How Standard Of Living Of A Country Is Maintained?

The standard of living of any country means the average person's share of the goods and services which the country produces. A country's standard of living therefore depends first and foremost on its capacity to produce wealth.


Wealth here means ‘goods' such as food and clothing and ‘service' such as transport and entertainment. A country's capacity to produces wealth depends upon many factors. It depends to a great extent upon a country's natural resources, such as coal, gold and other minerals, water supply and so on.
The USA is one of the wealthiest regions of the world because she has vast natural resources, her soil is fertile, and her climate is varied. The ability to convert the natural resources for human utility is another crucial factor. Sound and stable political conditions and freedom from foreign invasions enable a country to develop its natural resources.
Another important factor is the technical efficiency of a country's people. A country's standard of living does not only depend upon the wealth that is produced in a country but also upon international trade. Standard of living of a country is said to be higher incase of more exports than imports. Since exports pull a lot of money and this increase a flux of foreign exchange. On the other hand, the imports carry away money from the country. That is why all countries endeavor to be self-sufficient as possible as they can so as to save foreign exchange.