A developing country has abundant natural resources but most of them are exported as raw materials. Despite this, the country remains poor. Using what you know about the role of manufacturing, explain why this happens and what the country should do to improve its economic condition.
Generated by claude-sonnet-4-6 · 2026-06-26 13:34 · grounding rag
Model Answer
The country remains poor because it exports raw materials at low prices, earning little revenue. Value is added only through manufacturing — converting raw materials into finished goods fetches far higher prices in the market.
As stated, "countries that transform their raw materials into a wide variety of finished goods of higher value are prosperous."
To improve its condition, the country should:
- Develop manufacturing industries to process raw materials domestically.
- Export finished/manufactured goods instead of raw materials to earn more foreign exchange.
- Use industrial growth to reduce unemployment and poverty.
This way, wealth generated stays within the country, driving overall economic development.
Source: Chapter 6 — Manufacturing Industries, Importance of Manufacturing
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Explanation
- The examiner wants you to link raw material export → low income, and manufacturing → value addition → prosperity. These exact phrases appear in the passage.
- Quote or paraphrase the textbook line about "countries that transform raw materials… are prosperous" — it directly answers the question and earns marks.
- Keep solutions practical and textbook-based: process domestically, export finished goods, create jobs.
- Avoid writing a long essay; 3 marks = ~3 clear points, each in one line.