Answer:
Prices are often volatile due to inelastic demand. e.g if there is a ‘good harvest’, supply will increase and there will be a fall in the price of primary products. However, because demand is inelastic, this would lead to a fall in revenue.
coffee-supply-price-growers
The volatile price of coffee – can make planning difficult.
Supply can also be volatile due to weather and disease. For agricultural crops, there is always a risk of crop failure, which could cause economic hardship in one particular year.
Limited resources. One day developing economies may run out of its finite primary products, e.g. precious metals could become scarce. Without diversification, this would leave the economy with a void.
Discourages investment in other aspects of the economy. Concentrating on primary products does not always help the long-term development of an economy because it can contribute towards a lack of investment in other aspects such as education and industrial production. Comparative advantage can change over time. It’s important to not just look at the present comparative advantage, but prospects for next 10 or 20 years.
There is a low-income elasticity of demand for primary products. With a rise in global income, there is a proportionately smaller percentage rise in demand for primary products. (agricultural products tend to be income inelastic). Therefore, if you produce primary products, you may see lower rates of economic growth than countries who produce manufacturing goods – which are more income elastic. The Prebisch-Singer hypothesis suggests that countries who concentrate on primary products are vulnerable to a declining terms of trade.
There are 5 points
Hope it helps!!!
Answer:
Easy. Republicans. Great question! My favorite topic!
Explanation:
I choose the republican party for many reasons. First of all republicans don’t want to raise your taxes. They are big believers in political assimilation as a country and a wall to keep out the dreaded illegal immigrants. The other side, the radical lefts, control the mass media outlets. Whether it is Twit.ter, Face.book, CNN, MSNBC, and many more, they all incorporate fear to make the republican party look bad. This includes Trump. They make smears and lies for the sole purpose of trying to convince that Joe Biden is better in this year's election. Joe Biden has not done anything in his nearly 50 years of the political business. He and Kamala Harris does exactly what the media tells him to do, even if it so far-fetched. Though Donald Trump has some crazy tweets occasionally, Joe Biden isn’t much better. I wouldn’t call hunkering down in his little Delaware home beneficial either. Joe Biden and the democrats makes all these promises to the people, but it is all lies. Nowadays, Trump spends half of his day responding to these quips from the hateful left. The democrats tend to call people “racist” and they support BLM. Don’t get me wrong, ALL lives matter, including blacks, but BLM is a fascist organization. There is scientific proof behind it. In addition, when Republicans prove Donald Trump’s innocence or do something good for society, Democrats won’t even bother reporting it because it is not on their agenda to make them look good. I cannot choose your political party for you unfortunately, but if you just follow Trump more closely, you will see what I mean. If you get a chance, Rush Limbaugh is my favorite conservative. He only speaks the truth and If he is ever wrong, (which is slim to none because nobody is perfect) he immediately corrects it and spends 10 minutes apologizing. Democrats don’t seem to understand that Republicans are only doing what is best for the American people. Most people believe all those media sources because the technology is our everyday lives. Nearly every single news reporting station on TV or online is democrat run. Don’t listen to the backstabbers, fearmongering, hateful, people who do it for the money and fame. Listen to the people who actually care and will do it for nothing. Go Trump 2020!
Sorry, this was so long. Once I started, I couldn’t stop! Hopefully this helps your shape of view mate! I don’t need brainliest on this one, I was happy to help!
I believe your answer would be they grew at an excessive rate and it was to hard for them to be controlled
Answer: A. Increased competition can harm businesses in developing countries.
