10.07.09 - Agriculture : cultivating crops and rearing...

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Agriculture : cultivating crops and rearing livestock to produce food and fiber for sustenance or economic gain Cash Crop ; crops grown for sale/trade compared to subsistence crops that are mainly consumed by the farm family Terms of trade: the ratio of a countries average export price to its average import price(commodity terms of trade) Tariffs – a fixed percentage tax on the value of an imported commodity levied at the point of entry into the importing country Income Elasticity of Demand : relative change in the amount of a commodity purchased divided by the relative change in money income % Change in amount purchased / % change in income Price Elasticity of Demand – the relative change in the quantity of a good demanded devided by the relative change in the relavative price of the good Traditional agricultural exports face unstable global prices (coffee, tea, sugar, cotton) International terms of trade have tended to favor manufactures in the recent past Falling commodity prices, e.g. sugar coffee and cotton and mainly due to
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10.07.09 - Agriculture : cultivating crops and rearing...

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