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
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Answer:
The answer is below
Explanation:
Here are some of the Democratic values and ways in which they support Democracy in the UK
1. Liberty: with the people having the right of expression of their opinions in the country, people are free to say and do what they feel is right without any fear of consequences.
2. Popular Sovereignty: with people knowing that they have authority over the government, they act without being reprimanded unjustly, because the power of the government resides in the people.
3. Equality: the people living in the UK understand the fact that everybody is equal before the law. Hence, those in top positions are prevented from abusing their power over the common man.
4. Rule of Law: given that there is an existing rule of law guiding the affairs of the people, people in the UK behave accordingly without subjecting anybody to unnecessary suffering. They also follow the right conduct.
Answer:
Though the Louisiana territory had changed hands between France and Spain a number of times, in 1800 Spain ceded the territory to Napoleon’s France. Napoleon, whose attention was consumed by war in Europe, began to view the territory as a needless burden. In 1803, he volunteered to sell all 828,000 square miles to the United States for the bargain price of $15 million.
Jefferson adhered to a strict interpretation of the Constitution and believed that without a specific enumeration of his right as president to acquire the purchase, buying the Louisiana Territory could plausibly be unconstitutional. The Federalists opposed the purchase for several reasons, chief among them the likelihood that new slave states would enter the Union from the southern parts of the territory.
Explanation:
