Primary Product Case Study

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Primary products have been a major source of income, but it was believed that relying on primary products would not help a country develop unless the country implements an industrialization strategy.
Manufacturing is an important activity to promote economic growth and development. Nations that export manufactured products tend to generate higher marginal GDP growth which supports higher incomes and marginal tax revenue needed to fund the quality of life initiatives such as health care and infrastructure in the economy.
Shifting from exports of primary products to exports of manufacture products can prevent declining terms of trade of primary products. If China focus in exporting primary products it is believed that the terms of trade for primary products will decline over time. That is, over time it will take increasing amounts of an agricultural or mineral product to pay for a manufactured good. China will not want to continue to be a primary product producer because the terms of trade will continue to decline for them, and they will never escape poverty.
Additionally, there is a limit to the price that can be
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China's carbon dioxide pollution was caused by the manufacturing of goods for other countries. According to the research, in year 2008, China officially overtook the US as the world's biggest CO2 emitter. But the new research shows that around a third of all carbon emissions are the result of producing goods for export. Moreover, China as the clothing manufacturer that contribute the ¼ of the world’s volume in cloth exporting has make China a serious water pollution. The World Health Organization estimates that polluted water causes 75 percent of diseases in China. This is due to the textile production that produces chemically saturated and toxic wastewater and flows into the

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