negative implications

• What is a potential negative outcome of an abundance of natural resources?

  Resource curse affecting economic development
• What are commodities typically subject to?

  Significant price fluctuations
• Why do commodities experience price fluctuations?

  Due to the inelasticity of demand and supply
• What can cause disruption to agricultural commodities?

  Extreme weather and natural disasters
• What are the effects of fluctuations in commodity prices on a country?

  Impact on incomes, tax revenues, and foreign exchange
• What challenge do firms and governments face due to price fluctuations?

  Difficulty in planning investment and output
• What can happen when commodity prices rise over several years?

  Over-investment in the production of the commodity
• What is the term for the negative economic impact of abundant resources?

  Resource curse
• What does inelasticity of demand and supply refer to?

  Limited responsiveness to price changes
• How do extreme weather events affect agricultural commodities?

  They cause disruptions in production
• What are the broader economic implications of fluctuations in commodity prices?

  They affect government revenues and foreign exchange
• What is a consequence of over-investment in commodity production?

  Potential market saturation and price drops
• What is a consequence of increased resource extraction by TNCs?

  Increased risk of political conflict
• What is another consequence of resource extraction by TNCs?

  Corruption and land grabs
• Why is resource extraction considered capital intensive?

  It requires significant financial investment
• How does resource extraction affect politicians' power?

  It increases the power of politicians
• What are the implications of TNCs' land grabs on local communities?

  They can lead to displacement and conflict
• If a country experiences increased political conflict due to TNCs, what might be a potential response from the government?

  Implement stricter regulations on TNCs
• What role do TNCs play in resource extraction?

  They often dominate the extraction process
• How does the capital-intensive nature of resource extraction relate to political power dynamics?

  It can lead to increased influence over governance