The Global Economy

Agriculture plays such a huge part in maturation countries. It is essential for many reasons; it provides nutriment for the population and employment. However, oer trust has meant that countries equivalent the Caribbean continue to get poorer because the countrified arena has low productivity aims, high input costs and a fail to make a break through in research and breeding. The high fluctuations in global prices of artless products has exhaust to the existing show of countries like the Caribbean, most of these developing countries state similar goods for export such as bananas and this has led to a surplus in crops like bananas and so the price has been go even to levels below the cost of production, this make passs to underdevelopment in the agricultural area. A ominous reliance on the agricultural sector washstand also be a business if at that place is a natural disaster or a mediocre harvest. This nominate completely wipe out the crops for that year te ther to food shortages and unemployment levels rising. This may lead to the importation of food from abroad which would lead to an unfavorable balance of payments and unsustainable debts.

Most agricultural products from developing countries, like that of the Caribbean, are exported to highly-developed countries, however most developed countries natter quotas and tariffs on imports from developing countries, this is a major problem to developing countries because this restricts the level of exports to such countries. Overall a heavy reliance on agriculture in some LEDCs causes more(prenominal) problems than benef its. LEDCs should savour towards diversifyi! ng the products they farm and modernizing the agricultural sector. Policies that will aid in the development of the agricultural sector will increase the level of exports of these products, subsidizing the agricultural sector will give them an incentive to produce more.If you hope to get a full essay, order it on our website: BestEssayCheap.com

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