Question

What conclusion can you draw about the level of economic development in countries with different specializations in a commodity chain? (1 point)

Answer 1

The specialization of countries in different stages of a commodity chain can indicate the level of economic development. Typically, countries that specialize in the early stages of the chain, such as resource extraction and manufacturing, tend to have a lower level of economic development. On the other hand, countries that specialize in the later stages of the chain, such as design, marketing, and distribution, usually have a higher level of economic development. This difference in specialization reflects the varying capabilities, technological advancements, and value-added activities each country possesses, thereby influencing their level of economic development.