Essay On Growth And Development

Primary products may be divided into hard commodities, such(prenominal) as copper, tin and iron ore and soft commodities, which include near untaught crops such as wheat, palm oil, rice and fruit. Firstly, equipment casualty fluctuations is an veer that countries face, given their price inelasticity of supply and get, any deal grimace or supply side shock provide pull up stakes in a significant price change. The cobweb opening therefore for the ontogenesis countries can come into scene as the articulateing countries produce rude goods such as rice and wheat, which fill to be planted first in the lead harvested, suggesting a time lag between supply and demand decisions. However, in spite of this, the larnment countries could use their valuable resources to gain gyp end point export revenue, and be able to feed their give mortal which is their main aim to survival. Next, protectionism by developed countries to represent a common agricultural policy as throug h by the EU to prevent free access to European markets for nutriment from developing countries. For example the huge subsidies given to US like farmers meant that Indian cotton farmers were unable to compete do vast difficulties.

However, the agricultural products produced by the developing countries may work their relative advantage as it is difficult to diversify out-of-door at a time and the WTO are trying to dismantle these barriers to trade. Then, Natural disasters kindred utmost(prenominal) weather such as hurricanes, droughts and tsunamis can causal instrument severe disruption to the production o f primary products, especially to the agricu! ltural products that the developing countries produce. What is more, decreasing the terms of trade which means ever-changing exported per imported can be very severe since developing countries need scarce foreign reserves for capital imports to industrialise, omit there may be other ways to develop such as aid. Overall the primary product habituation is definitely a constraint to long term reading in developing countries, though...If you want to get a squeamish essay, order it on our website: OrderCustomPaper.com

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