Question

An economy that is based on mining or producing raw materials to be used in foreign industries is called

Answer 1

Answer:

An extractive economy

Explanation:

An Extractive economy can be defined as a resource based economy that is based on mining or producing raw materials to be used in foreign industries. This natural resources can be exported for sale in other foreign countries which help to boost economy, growth and development.

Answer 2

Answer:

An extractive economy

Explanation:

A country that largely relies on the natural resources or the resources that it produces with little or no processing is often referred to as an extractive economy. All of the countries were mostly extractive economy before the first industry revolution. After some every country realized that the finished goods have greater profits than the raw materials with little or no processing. So we see countries like oil exporters investing in other industries because of bulk of cash reserves.