Question

In: Economics

Consider the effect of trade liberalization on agricultural markets. Using your weekly readings and additional research,...

Consider the effect of trade liberalization on agricultural markets. Using your weekly readings and additional research, discuss the challenges experienced by the Saudi Arabian agriculture industry. What financial support does the KSA government provide for its agricultural sectors? How could the KSA improve its agricultural sectors policies? What types of results would you expect for these improvements? Any foreseen consequences?

please no hand writing and no copy please

Solutions

Expert Solution

1)The effect of trade liberalization on agricultural markets is beyound the Agricultural Sector of particular interest, developing countries exports of agricultural products to developed countries would increase more if developing countries reduced their own barriers to import of manu-factured goods.

Trade liberalization directly leads to higher growth rate but lower variety scientific knowledge ratio. The latter negative effect is proportional to popular size.Thus trade liberalization leads to higher growth rate when population size is small.

2)Challenges faced by Saudi Arabia on agriculture industry are as follow

cope with climate change, soil erosion and biodiversity loss and satisfy consumers changing tastes and expectations. Meet rising demand for more food of higher quality.Invest in farm productivity. Adopt and learn new technologies and finally stay resilient against global economic factors.

3) Financial support provided by the KSA government for agricultural sector is enormious. Government programs the primary agency research for implementing agricultural policy is the Ministry of Agriculture,which provides research and extension assistance to farmers. Another supporting agency is the Saudi Arabian Agricultural Bank(SAAB), which disburses subsidies and grants interest-free loans.

4) Improvement in the KSA agriculture policies take place with key measures are as follow

They started smart water management. Using of drop by drop or sprinkler irrigation systems you can increase crop yields upto 50 percent. Varieties selection and improved heat tolerant varieties allow the plant to maintain yields at higher temperature. Also they establised conservation tillage and farm management software.


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