4)Commodities and development is the method of developing a country's sales.Every nation and country tries to develop their sales to incur more profits.
A.)When a country has plenty of few resources and if it produces products from those resources and exports only those products then this situation can be addressed as commodity dependence Dutch disease,resource curse,effects on trade and economic sector ,etc are the problems faced during the process of commodity dependence.A country faces these problems when it concentrates only on production and transit of particular products to foreign countries.If only few products are transited or sold in the domestic and foreign country then a severe damage is caused to the trading sector and this effect can be called as dutch disease and resource curse .Then that country's trading is effected as only few product's contribution is maximum towards gross domestic product.Economic sector is damaged too as production of particular goods is high.These are the problems of commodity dependence.
B.)Economy should be diversified as it includes extending its importing and exporting activities towards various countries.If economy is diversified,then income gained from trading activities would increase.Commodity sector should be modernised since usage of new technology helps in boosting the production level and invention of new products can be done.Commodity supply chain can be practised as it includes analysing the raw materials and resources available in the country,then produces goods and products from it and increases sales level and profit of the country.Encouraging Foreign Direct Investments accelerates the availability of capital.The amount gained through FDI can be used as capital for many businesses which contribute towards production and sales rate of the country.New sectors which improve technological development,digitalization, etc should be encouraged.Even the the sectors which produce semi-finished goods,sports material,goods which are highly demanded can also be encouraged as these occupy majority of sales rate.
C.)Certain goods and products are effected when climate changes.Production of certain goods is damaged when climate tends to change like for example,rains in off-season damage the crop and there is loss of production.Even finished and packed goods are damaged when climate changes. Sustainabilty is effected too due to rapid growth in birth rate of human beings,over usage of resources and raw materials,inventing hazardous things which cause damage to the environment.All these aspects and things effect the commodity economy as over usage of raw materials might go scarce and there might be no availabilty of those raw materials and products.Firstly the harmful industries which emits CO2 gas should be banned or should be situated in the outskirts.Plastic production should be limited as it take long time to decompose and releases carbon dioxide into the air which inturn causes the emission of green house gases.This CO2 leads to unusual rainfall,increase or decrease in temperature etc and damages the production,trade,distribution and use of commodities.Due to these adverse changes in environment like unusual rainfall ,production is damaged and even trading and distribution is effected since goods cannot be transited and distributed in severe climatic conditions.When limited goods are produced then supply would be effected and demand would rise, but consumer will not be able to use those goods because of scarcity.
Hence ,in this way a country is said to be commodity dependent.Various factors effect the commodity economy and tends to decrease the production and supply level.
4. Commodities and development A. Problems of commodity dependence including resource curse and Dutch disease; B....
4. Commodities and development C. The sustainability and climate change aspects of the commodity economy, including importance of limiting CO2 emissions, and other adverse environmental impacts of production, trade, distribution and use of commodities.