Question

In: Economics

what are the economic advantages of shipping canals and how do they differ from Straits and...

what are the economic advantages of shipping canals and how do they differ from Straits and isthmuses?

Solutions

Expert Solution

Answer:
Economic advantages of shipping canals are mentioned below:

  • The shipping canal creates an ease in world trade and many economic issues would have been resulted in absence of shipping canals.
  • Shipping canals also holds strategic importance in terms of its position and making trade route shorter and more efficient. Take the example of the Panama Canal, it allows shippers of various commercial goods to save time and money by transporting cargo more quickly between the Atlantic and Pacific Ocean.

Difference between canals, Straits and isthmuses:

  • A strait is a narrow body of water that connects two larger bodies of water.
  • Isthmus are narrow body of land that connects two bodies of water.
  • A strait may be formed by fracture in an isthmus.
  • If fracture in isthmus are created by human activities, then the strait which gets formed from this is called as Canals.

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