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!!!
Albert Bandura's Social Learning Theory shows that people learn from one another, via observation, imitation, and modeling. People learn observing others’ behavior and attitudes.<span> Social learning theory explains human behavior with the help of cognitive, behavioral, and environmental influences.</span>
Answer:
The major issue between the North and the South was slavery. Starting in the 1850s, Northerners became more and more hostile to the idea of slavery on moral grounds, while slavery continued to be an accepted fact of life in the South.
Explanation:
The two reforms of Mikhail were:
- encouraged government transparency .
- allowed multiple candidates to stand for elections in the country.
<h3>Who was Mikhail Gorbachev?</h3>
This man was a member of the Soviet Union and also a former communist leader in the USSR.
He was the 8th leader and also the last leader that the Soviet Union had before it broke up.
Read more on Gorbachev here: brainly.com/question/1286817
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The apartheid system.
The apartheid was a system of segregation in South Africa which Mandala protested throughout his lifetime.
