Case studies

Increasing trade and exports brings more money into a country’s economy. This can in turn be invested in development.

Any increase in production or development of new industry will bring both advantages and disadvantages.

Palm oil in Indonesia

Advantages

Ripe fruit on an oil palm tree
Oil palm fruit

Indonesia has a huge international debt and palm oil will bring in money which may help to pay off part of the debt.

The income generated from the sale of palm oil may mean that Indonesia does not have to borrow more money and go deeper into debt.

The development of palm oil plantations will provide jobs for many people. The income from palm oil is used to improve the standard of living of the local people. The demand for products made from palm oil is rising so Indonesia is guaranteed income in future years.

Disadvantages

More than 40 million hectares of rainforest has been lost in the last 45 years and the amount of rainforest loss is still increasing.

The rainforests are home to many animals which could become extinct as logging and burning destroy their habitat. The native way of life of the rainforest people is threatened as destroying the rainforest restricts the land available for hunting and farming.

Large areas are cleared by burning which increases the amount of CO2 emissions leading to an increase of greenhouse gases and global warming.

Tourism in Gambia

Advantages

Tourism brings much needed money into the developing country, which will improve their standard of living.

It will provide jobs for locals, many of them requiring little skill. The money generated can help projects like nature reserves.

Disadvantages

Most locals can’t afford to use the facilities and beaches. Employment may only be seasonal. Prices are low, due to competition, which limits income.

All tourist income is in the coastal areas so inland areas don’t develop. Many resorts are owned by foreign companies, so the profits go abroad.