Low popln growth rates in developing countries

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Low popl’n growth rates in developing countries Decline in prices implies low revenue (some periods of price spikes, including recent yrs, but very long-run trend has been downward) Lack of success w intern’l commodity agreements Development of synthetic substitutes Agricultural subsidies -Primary-commodity export expansion, supply rigidities Structural rigidity of many rural production systems in developing countries Limited resources: poor climate; bad soils; outdated rural institutional, social & economic structures; and non-productive patterns of land tenure Expanding exports of manufactured goods: greater successes, particularly ChinaImport substitution: looking inward but still paying outward -Tariffs, infant industriesInfant industries – newly established industries usually protected by a tariff barrier as part of a policy of import substitution Trade optimists & trade pessimists: Summarizing the Tradition Trade Debate Trade Pessimistarguments:-Limited growth of world demand for primary exports -Deterioration in terms of trade -Rise of ‘new protectionism’Trade optimistarguments – trade liberalization:-Promotes competition & efficiency -Generated pressure for production improvement -Accelerated overall growth -Attracts foreign capital & expertise ExamMultiple choice questionsShort answer questions 50/50 1stpart related to 2-4 models 2ndquestions – read slides/textbook for multiple choice questions Not cumulative

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