Primary Sector of the Economy in a rich country: model.
Look at the following diagram:
Some questions.
- what type of products are mainly cultivated in rich countries?
- Who are the potential buyers of the agricultural production in rich countries?
- The small farmers in rich countries, how can they get the necessary to survive?
Customs duty.
A customs duty is a tax used to avoid that foreign products, which are cheaper, compete with the products from the country. How? Very simple:
The foreign producer is obliged to pay a strong customs duty, so that he necessarily has to sell his product at a higher price if he does not want to lose money. Therefore, since it has become more expensive, this product cannot compete with the national product.
