Many spokespersons of African countries complain that the U.S. and other developed countries heavily subsidize cotton. What is the reason for their discontent and what argument are they making with respect to their own economic development?
What will be an ideal response?
They argue that the subsidies lead to worldwide overproduction and distort cotton prices, depriving poor African countries of one of their few goods for which they have a comparative advantage in international trade. Not only is cotton crucial to their economies, it is the often the sole agricultural product for their countries to trade.
You might also like to view...
During what period of time did the United States most consistently adhere to the gold standard?
A) from 1914 until 1929 B) from the eighteenth century until the nineteenth century C) from 1944 until 1980 D) from the nineteenth century until the 1930s
In what way does this map serve as an abstraction?
Zoom out to the highest level. How does this affect the level of abstraction? When would each type of map be most useful? Generalize this argument by discussing the level of abstraction needed for alternative economic models.