ECONOMICS
ECONOMIC DEVELOPMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Being surrounded by other countries will decrease shipping costs
|
|
|
Being surrounded by the coast will increase shipping costs
|
|
|
Having no property rights will decrease economic development
|
|
|
Being surrounded by countries increases shipping costs
|
Detailed explanation-1: -Landlocked developing countries thus pay a high price for not having a sea port of their own. Their trade depends on ports of other countries. The worse transport links are, the higher the transaction costs rise.
Detailed explanation-2: -Lack of territorial access to the sea, isolation from world markets and high transit costs continue to impose serious constraints on the overall socio-economic development of Landlocked Developing Countries (LLDCs).
Detailed explanation-3: -Landlocked nations face greater transport costs and are dependent on the transport, infrastructure and ports of their coastal neighbours. It is more difficult for these countries to integrate into global markets, including manufacturing which to date has been the most reliable driver of development.
Detailed explanation-4: -Historically, being landlocked has been disadvantageous to a country’s development. It cuts a nation off from important sea resources such as fishing, and impedes or prevents direct access to maritime trade, a crucial component of economic and social advance.