5 Questions
Which one of the following statements about linkages is true?
Forward linkage is when the product of one industry becomes the raw materials for another industry.
What is an example of international backward linkage in the Caricom region?
The motorcar assembly industry linked to foreign manufacturers located all over the world where auto parts are manufactured.
What are some benefits of developing linkages?
All of the above.
What is the relationship between agricultural production and subsidiary industries?
Agricultural production gives rise to a variety of subsidiary industries that are closely linked to various products.
What is the benefit of forward linkage?
An outlet for the product.
Study Notes
Linkages in the Caricom Region
- International backward linkage in the Caricom region is exemplified by the importation of farming equipment from the US or Europe, which stimulates the growth of local farming industries.
- Developing linkages can bring several benefits, including increased economic growth, job creation, and improved competitiveness.
- Agricultural production is closely tied to subsidiary industries, such as food processing, packaging, and transportation, which can lead to the creation of new businesses and employment opportunities.
- Forward linkage is beneficial as it enables the production of value-added products from raw materials, thus increasing the value of agricultural products and generating higher revenue for farmers.
Test your knowledge on regional economic development and the interdependence of industries. Explore concepts such as forward and backward linkages, diversification of economies, and the impact of agricultural production on subsidiary industries.
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