Cardset

Dependancy on primary commodities for big share of export revenue risky -> if disruption occurs -> current account deficits likely to increase -> difficult to finance current expenditure and necessary imports

Much economic growth cannot be attained through international market -> limited range of products available for export

Price and export revenue fluctioation -> difficult for planning ahead

economic policy aimed at supporting domestic producers qt the expense of foreign producers

Protectionism -> limits other countries from exporting their goods -> developing countries limited in earning foreign exchange

No taxation or administration -> not included in countries gross National income -> no capital for government

any domestic capital that leaves country -> could have been used internally & restricts growth

depreciation of the currency as supply of domestic currency increases on international money markets in response to increased demand for foreign currency for oversees investment/saving

Damaging long term wise as debt has to be payed back with interest rates

Opportunity cost -> country isn’t able to utilise money on other aspects of economy