This preview shows page 1. Sign up to view the full content.
Unformatted text preview: and mines. The unskilled are given subsistence wages, capital and skill labor is foreign owned, and the land receives low rents b. Know the various disadvantages of specializing in agricultural goods (commodities, consumption goods) and how this form of specialization can lead to very slow or stagnant economic growth. They have low income elasticity of demand, low price elasticity of demand, and provides a fragile export base when primary products were main export. They are also sensitive to synthetic substitutes found in developed countries. c. Be prepared to discuss the advantage of trade in the form of shared ideas and technology. Trade can lead to transfers of ideas from developed to developing countries through tech transfers, research finds that can increase trade and investments, trade can be a stepping stone to developing own technology....
View Full Document
- Spring '09