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Re: Econ Dev Prof sez that . . .
Your professor is wrong.
On point a, obviously Canada and developed European countries are not self-sufficient in things like coffee, tea, tropical fruit, etc (the same probably applies to the US)
As for b, it depends. In a given year, Canada may have a bumper wheat crop while the US does not. So Canada would be more productive in that given year.
As for the question of why have subsidies, even if it would be cheaper to buy all food from overseas, it may not be in the best interests of a country to do so. Yes, it might be cheaper, but the decision to use subsidies is not based just on price.
There are health safety issues, like mad cow disease. Countries that have no cattle farms must rely on others countries that may not have strict health regulations.
There is a question of choice. Canadian beef tastes differently from Australian beef, but in Hong Kong, it is extremely difficult to get Canadian beef.
The French argue that it is necessary to protect small farms in order to maintain a flow of specialized items like different varieities of cheese.
Finally, there is the argument that maintaining financially uncompetitive farms is necessary for national security. Domestically grown food is required in times of war.
Originally posted by Lawrence of Arabia
developped countries are a) self sufficient in agriculture products and b) more productive in terms of agriculture.
why then is it that developped countries feel the need to subsidize agricultural products to the tune of $350 bn a year?
developped countries are a) self sufficient in agriculture products and b) more productive in terms of agriculture.
why then is it that developped countries feel the need to subsidize agricultural products to the tune of $350 bn a year?
On point a, obviously Canada and developed European countries are not self-sufficient in things like coffee, tea, tropical fruit, etc (the same probably applies to the US)
As for b, it depends. In a given year, Canada may have a bumper wheat crop while the US does not. So Canada would be more productive in that given year.
As for the question of why have subsidies, even if it would be cheaper to buy all food from overseas, it may not be in the best interests of a country to do so. Yes, it might be cheaper, but the decision to use subsidies is not based just on price.
There are health safety issues, like mad cow disease. Countries that have no cattle farms must rely on others countries that may not have strict health regulations.
There is a question of choice. Canadian beef tastes differently from Australian beef, but in Hong Kong, it is extremely difficult to get Canadian beef.
The French argue that it is necessary to protect small farms in order to maintain a flow of specialized items like different varieities of cheese.
Finally, there is the argument that maintaining financially uncompetitive farms is necessary for national security. Domestically grown food is required in times of war.
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