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Can economies grow of less developed countries by developing its secondary sector?
Economies grow of less developed countries by developing its secondary sector because manufacturing:
• Commonly has a higher value added than agricultural products and it may bring employ, exports and growth and higher incomes.
• Has higher income elasticity of demand therefore as world income grows demand for manufacturing rises by a big proportion. The opposed is true for agricultural products.
• Fewer prices is volatile as this is not as subject to unforeseen conditions (frost, disease) like agriculture.
Are the terms of trade (ToT) a problem? Problem : The terms of trade (ToT) of a country fall when its import prices rise quicker than the price of its exports. Less Developed
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Define economies grow of less developed countries by developing its secondary sector. Less developed countries economies grow by developing its industrialising: Manufacturi
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