International Trade and Economic Development
There are a number of international factors that act as a barrier to both growth and development. Give examples of how the following may have impacted your country:
An overspecialisation would mean that the country is overly dependent on commodity exports. Furthermore, primary commodities which are the main source of exports for Somalia, has no value added to it and is generally exported at a cheaper price. Thus it also means that they are missing out on the benefits brought along with diversification (mainly that even if one market fails the entire economy of the country is not dependent on it. Furthermore, in the long run it is likely to bring about economic growth).
Price volatility of primary products
Primary products have increased price volatility which means that the prices vary at an increased degree, as seen in the diagram.
Price volatility of primary products in Somalia
Inability to access international markets
This is generally because developing countries impose increased tariffs on imports from developing countries than on imports from each other and moreover, developed countries use tariff barriers to discourage the development of manufacturing and diversification into higher value added products.