Reliance on primary products as a form of trade

Question

Quizplus · Accepted Answer

Historically, reliance on primary products as a form of trade has not been a highly effective means for LDC development. The income from primary products tends to fluctuate due to changing global demand and supply, as well as environmental factors such as weather conditions. This instability can hinder long-term planning and investments in other sectors of the economy, which are necessary for sustainable development. While some LDCs may benefit from producing more than one primary product, overall, there are limitations to relying solely on primary products as a source of income and economic growth.

Reliance on Primary Products as a Form of Trade