Question

Explain how difficulty of importing and exporting in a low Doing Bussiness Rank may limit trade agricultural goods and how this affects the quantity and price of food.

Answer 1

Low ease of business doing in exports and imports will lead to a wide fluctuation in the price of the agriculture goods across years, one year the price of the goods may increases to a great level and other year there may be a glut. For example due to some season variation onions crop was bad in a year, because the nation cannot import easily the consumers will have to face a higher price throughout the season, next year if there is a bumper crop the prices will fall and the nation cannot export it easily that will lead to low prices causing a loss to the farmers.