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Over the past several decades, the economies of the world have become increasingly linked, through expanded international trade in services as well as primary and manufactured goods.
(a) Many less developed countries have a static comparative advantage in the production of one or two primary products. In what ways might specialization in these products contribute to growth and development?
(b) In what ways might the specialization strategy fail to contribute?
(c) State explicitly any assumptions about world economic conditions that encourage trade with some but also adversely affect trade with other developing countries. Give examples to support your answer.
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