Answer to Question #325850 in Microeconomics for Pride

Question

Canada is a major producer of weed because the agricultural sector is so large relative to the size of the population they are also major exporter is not surprisingly they both had for open access to foreign markets between 1990 and 2000 agricultural goods and food by product exports increased by more than 100% to continue their strike they will have to not only win the Battle for lowered tariffs but also battling a world prices brought experience the heavy pressure of falling prices in order to remain competitive economy and farmers will have to continue to increase their own productivity does the problem of Us Farmers and their continual contribution to lower prices in an effort to maintain profitability through productivity increases is played out on the world stage as well show the international Financial institutions such as the wto interview in the international agricultural market to stabilize prices who will be held and who will suffer if it did

Answer 1

The problem will be held in future and the main suffer theoretically will be on farmers, because, all in all increasing of productivity to save incomes in situation of decreasing prices on the 1 quantity of product doesn`t work in long distance, in situations, where international markets will have control over the price. However, if we speak about competitive market, it will have another result. There, it is natural process of setting price, because all in all, if it will fall too heavily, companies will go out from market, the number of proposal decrease and price increase to the certain level.