Questions and Answers
Kernland imposes a high tariff on the export of unprocessed cashew nuts in order to ensure that the nuts are sold to domestic processing plants. If the tariff were lifted and unprocessed cashews were sold at world market prices, more farmers could profit by growing cashews. However, since all the processing plants are in urban areas, removing the tariff would seriously hamper the govt's effort to reduce urban unemployment over the next five years.
I dont undestand the above para….i have doubts in lines
>>unprocessed cashews were sold at world market prices
where its sold ? Outside or in domestic market ?
>>>>removing the tariff would seriously hamper the govt's >>effort to reduce urban unemployment over the next five >>years.
Why ? How removal of tariff will reduce urban unemployment ?
Its confusing here.
I think the starting point is that Kernland is protecting its national industry by making sure its cashew nuts are processed in the country.
It seems there are two prices for the nuts, one in the world market and another for domestic business. International prices paid are higher but the tariff impossed lowers the farmers' profit.
Answering your questions:
1- In the domestic market (evidence: 'are sold to domestic processing plants.')
2- Right now the national industry is processing the nuts because farmers (producers) have to sell their nuts to the national industry as if they were to sell them internationally they would have to pay heavy tariffs and therefore their profit would fall.
3- If the tariff was removed, farmers would sell their nuts internationally and there wouldn't be enough to keep their industry working.
4- The removal of tariff will NOT reduce urban unemployment
The removal of the tariff will make the government's effort more difficult. I think the key word here is 'hamper'.
To hamper means to hold back; hinder; impede.
It is usually said that we need to empower farmers i.e we need to educate them.Dont you think that if we educate they will move to urban areas and wont like to do farming?After gainnig education no one would be interested in doing manual work isnt it?
Please give ur views on it..
Thanks for your time.
No, I do not think that educating farmers will make them stop farming and move into the city. All it means is that they are more informed about the outside world. This allows us to see a global economy and what the demands will be for the future. We also learn technology that further helps in production from soybeans to cattle. If you really talk to a successful farmer, you will notice that they are in fact pretty intelligent people. We may not know how to do brain surgery, but ask a farmer how they work their land in order to survive, and I think you will be pretty surprised about how detailed their information is and the reasoning behind it.
Why Has one Life become more prevalent?
Why more prevalent?
Farming is a stabler source of food.