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14 April, 08:38

Suppose that the hypothetical country of Kernaland suffers from chronic scarcity of its staple grain, corn. True or False: The country of Kernaland must be a developing country, since scarcity is not a problem in developed countries.

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  1. 14 April, 08:47
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    False, Not necessarily

    Explanation:

    According to the question, Kerneland suffers from a chronic scarcity of its staple grain, and corns which are agricultural products don't mean that a country is not self-sufficient in itself. Since Kernaland faces this scarcity it can import the same products from other countries to get rid of this problem which maintaining a balance of trade it can export what it specializes with. Developed countries have had similar problems of food scarcity in the earlier periods, but have overcome this. Blaming developing countries from the lack of food supplies is not a good way of understanding the economy, as many nations that are now developed or food sufficient had to import more of agricultural produce example is landlocked countries.
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