GGR221H1 Chapter Notes - Chapter 2: Developing Country, Resource Consumption, Comparative Advantage
19 Jan 2016
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Chapter 2 staples theory, the canadian resource. A principle item of trade of consumption produced and/or consumed by a society: ex: potato in ireland. Heavy dependence upon staple items of trade leaves economies vulnerable to fluctuations in demand and prices, and to long-term fall in demand for naturally produced products as they are replaced by industrial alternatives. Uneven development may lead to the emergence of a dominant staple commodity critical implications for sustained growth. Staples of local consumption face competition from more commercial, export-oriented users of land with harmful consequences for local food production and food supplies and sustainable development. Staples econ not limited to ledc: squeeze out alterative sectors, conditions future development because of the formative socio- economic influence of a distinctive division of labour. Harold innis: a theory which suggests that national economic and social development is based upon the export of unprocessed or semi- processed primary resources. Diversification is blocked because of export mentality among producers.
