Question

In: Economics

Use the following terms to explain how Caribbean populations/economies are in a "global process of divergence"...

Use the following terms to explain how Caribbean populations/economies are in a "global process of divergence" and on a "path of convergence": gap, international demonstration effect, consumption, tourists.

Solutions

Expert Solution

Caribbean region is considered as the most highly urbanised area in the whole world. This is because of the reason that urbanised ares are administratively and commercially controlled.Beside this, they also do plantation agriculture more than manufacturing.

This fact itself shows that they are on one hand in the global process of divergence and also following the path of convergence.

The foundation of Caribbean ares was that of plantation agriculture. Convergence means universal adoption of those norms of consumption as adopted by Western countries.

Divergence means increasing fly varied production possibilities between national dur to international division of labour. It leads to improvement in the fields of manufacturing, tourism.Informal sector employment and housing can also be seen.

It is also said that tourists visit also has an impact on the spending pattern of Caribbeans. It thus effect their consumption pattern.

Thus by following the policy of convergence and divergence, it maintained its old plantation and also adopted modernisation to follow the path of development.


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