ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Countries in the Middle East can’t use technology due to religion
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Some countries do not use money
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No company will invest in the Middle East
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The climate is suited to traditional jobs
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Detailed explanation-1: -The economy of the Middle East is very diverse, with national economies ranging from hydrocarbon-exporting rentiers to centralized socialist economies and free-market economies.
Detailed explanation-2: -In conventional economies, farming, hunting, fishing, herding, and gathering are major contributors. What is the goal of a traditional economy? Its main objective is to keep the culture, beliefs, and traditions of a community or family alive-by following primitive economic activities and the barter system.
Detailed explanation-3: -The main advantage of a traditional economy is that the answers to WHAT, HOW, and FOR WHOM to produce are determined by customs and tradition. The main disadvantage of a traditional economy is that it tends to discourage new ideas and new ways of doing things.
Detailed explanation-4: -Two current examples of a traditional or custom based economy are Bhutan and Haiti (Haiti is not a traditional economy according to CIA Factbook ). Traditional economies may be based on custom and tradition, with economic decisions based on customs or beliefs of the community, family, clan, or tribe.