Based on the HRV Growth Diagnostic Framework and the Case

question 16

Essay

Based on the HRV growth diagnostic framework and the case study in Box 4.2, what are the binding constraints faced by Brazil, El Salvador and the Dominican Republic and how can these constraints be overcome?

---

Definitions:

Fixed Cost

Expenses that do not vary with the level of production or sales activity, such as rent, salaries, and insurance premiums.

Period Cost

Costs that are expensed in the period in which they are incurred, typically including selling and administrative expenses, rather than being included in the cost of goods sold.

Helpline Costs

Expenses incurred in the operation of a support service for customers, such as salaries for help desk staff and telecommunication charges.

Calls

Financial instruments giving the holder the right to buy a stock or commodity at a specified price within a specific time period.