Question

Pakistan, Bangladesh, and Sri Lanka specialize in producing which goods for trade?

Answer 1

Both answers A and B make sense. But, the 'correct' answer to this question would be B, Cloth and Clothing. Here's a little background on why.

To give a boost to bilateral trade between Pakistan and Bangladesh both countries have decided to finalize a bilateral Free Trade Agreement. Major Bangladeshi exports to Pakistan include textiles, agricultural products, leather footwear and other leather products.

Answer 2

The correct option is B

• Due to the very low labor costs, given the high poverty rate and the low or non-existent social protection, the main multinational textile companies are installed in Bangladesh. Since 2005 there have been at least 700 workers killed by factory fires.

• Sri Lanka: In 1977, the UNP government began to incorporate privatization, deregulation and the promotion of private enterprise. While the production and export of tea, rubber, coffee, sugar and other agricultural goods is still important, the nation has constantly moved towards an industrialized economy with the development of processed foods, textiles, telecommunications and finance.

• The structure of the Pakistani economy has changed from an essentially agricultural base to a strong service base. Agriculture now only accounts for approximately 20% of GDP, while the service sector accounts for 53% of GDP. Significant foreign investments have been made in several areas, including telecommunications, real estate and energy. Other important industries are clothing and textiles (accounting for almost 60% of exports), food processing, chemical manufacturing, and iron and steel industries.