Economics assignment on supply chains in Asia and the increase in intra-regional trade in Asia
Task: Can you explain in your economics assignment the reason behind the increasing intra-regional trade in Asia and its impact on supply chains?
Introduction to economics assignment
The following question in the economics assignmentis based on CAP, that showcases how the partnership between society and agriculture can function and can be beneficial to both the parties. It aims to improve the rural economy and provide better working conditions to the farmers by increasing their bandwidth of promotion and sale. There were various reforms that were launched under this policy in the economics assignmentand some were very effective, and some were not because implementation is a key hustle in such a big sector like agriculture and that is discussed below.
Discussion of economics assignment
As per the economics assignmentCAP was launched in 1962 and it is a partnership between the agriculture and the society and between Europe and its farmers. It aims to protect the farmers and improve their living conditions and help in reviving the rural economy by promoting more jobs in farming, agri-food industries and other. In 2002, major reforms were made in the policy that would help in making it more market oriented and increase its global reach. The key proposal made in the economics assignmentwas to delink the subsidiaries from the farm produce and redirecting the resources to more distortionary forms of farm support that would help in encouraging the farmers to produce more that would suffice their market demands and would also reduce their dependance on subsidiaries. But there was no proposal in the economics assignmentto reduce the export subsidies and import tariffs. However, it would help in increasing the overall production so that in turn will reduce the export subsidies and thus that would eventually help in increasing the worldwide market reach for the developing countries. We can apply the absolute theory here which shows how countries can capitalize their wealth in case they gain expertise in producing things better than other nations, thus in case the CAP helps in improving production It can be linked with the absolute theory(Recanati, et al., 2019). CAP is not endangering the food security in a developing world, because the main aim of CAP is to improve the agricultural produce and that can be done by maintaining sustainable levels of environment and that would in turn help to increase food supply globally. For a country like China that is a developing country and has the largest population of this world, it was seen that global produce did supported improvement in consumption of food. In 1983-2009, it was seen in the economics assignmentthat there was an increase in the consumption of the variety of food products, even the consumption of vegetables was the highest (nearly 5 times higher – up to the level of 321,5 kg per capita/year), and fruit (over 7 times higher – up to the level of 72,3 kg per capita/year).Thus, as wealth increases in developing countries, the problem of food security gets solved, as more and more people switch to sustainable ways of living(Lillemets, et al., 2022).
Based on the fact and data collected it can be said that food security is a major issue in so many countries and countries globally are fighting that issue that is affecting their growth and their well-being. Things that would help accelerate better production of food and crops should be the major agenda of any environmental policy and that is taken care of in this policy of CAP. AS per the economics assignment it is not a threat to the food security issues that the countries are facing and is aiming to improve international trade and provide better export opportunities so that farmers are getting good revenue and they can accelerate better growth in environmental terms(Rahman & Mishra, 2020).
Based on the overall analysis in the economics assignmentit can be said that this policy was not unsuccessful in reaching out to the masses and was effective enough in promoting agricultural production, increasing demand for the goods and accordingly making the supply chain more organized so that more and more sectors got developed. It was really good for the developing nations that were facing these issues of unsustainability and helped them in promoting better agricultural trade practices.
India is a country with the second largest population in the world and the country has one of the biggest agricultural sectors with half of the population living in rural world where it agriculture is the main source of income. It produces variety of crops and food products that are exported all around the globe and the major food sources are rice and wheat, of which India is one of the moreexporter globally. One of the major roadblocks in this economics assignmentis that it is not very organized and the supply chain is not defined clearly and thus many times the farmers are not getting their dues for their production. In this question we will discuss briefly about India’s agricultural practices and its overall activities and the effect of trade liberalization on the same.
In India, the major economic activities are agriculture combined with fishery and forestry and that is contributing to more than one third of the total GDP of the country and is the single largest contributor. Half of the country belongs to the rural sector that indulges in such agricultural production to sustain themselves. Primarily for now in the economics assignmentthe main sector contributes to around 18.20% of the total GDP. The major trading partners in case of agriculture are United States, China, United Arab Emirates, Saudi Arabia and the main national economic actors in the agricultural sector are Rice, Sugar, cotton produce, oil, fresh fruits vegetables among others(Maiti, et al., 2019).
The effect of trade liberalization for a country like India with agriculture being its major activity has been immense, it has help in making the farm markets more organized and approachable and has been able to increase the export prospects over here. The net effect of India’s trade liberalization has been to increase average productivity in both the formal and informal sectors(Rahman & Mishra, 2020). It has also helped in reducing the poverty in rural India as farm sector becomes more organized and farmers get more incentives for their produce. It also helps in making the sector more organized, more stable and with government intervention the farmer gets more customers and overall export sector also grows and improves based on that.
Based on the above economics assignmentand the data collected it can be said that better policies are needed that would help in making the trade sector more organized as we see more and more countries are getting associated with India and there is an immense growth in the number of exports that are made. Since agriculture is a major contributor to the GDP it is imperative that effort should be taken to make sure that growth is there with respect to better policies, structured government, diversified markets and better pricing models(HOEKMAN & SHI, 2021).
Agriculture is the backbone of a country like India, and it is extremely important that good trade practices must be there that would help the country in growing and increasing their export market. Trade liberalization though has helped the farmers a lot, needs to be better in terms of more export subsidies and reduction in taxes that would incentivize the farmers to produce more and grow more. As per the economics assignmentGovernment should help the farmers as they would be the benefiting in case export increases and better trading is there.
HOEKMAN, B. & SHI, J., 2021. Updating the general agreement on trade in services in theeconomics assignment. Robert Schuman Centre for Advanced Studies (RSC), 3(2), pp. 177-190 .
Lillemets, J., Fert, I. & HannesViira, A., 2022. The socioeconomic impacts of the CAP: Systematic literature review. Land Use Policy, Volume 114.
Maiti, D., Castellacci, F. & Melchior, A., 2019. Digitalisation and Development: Issues for India and Beyond. Digitalisation and Development, 2(1), pp. 3-19.
Rahman, A. & Mishra, S., 2020. Does Non-farm Income Affect Food Security Evidence from India. The Journal of Development Studies, 56(6), pp. 1190-1209.
Recanati, F., Maughan, C. & Pedrotti, M., 2019. Assessing the role of CAP for more sustainable and healthier food systems in Europe: A literature review on economics assignment. Science of The Total Environment, 653(2), pp. 908-919.