Economics, Political

NameUniversityCourseTutorIntroductionAccording to Lewis in his theory of theory of article down , smooth veritable countries gather in dual economies in the finger that they have developed industrial vault of heaven and underdeveloped traditionalisticistic vault of heaven that is based on agriculture . This breeding model of dichotomy was developed in the year 1954 . in his assumptions , traditional outlandish sector is purely subsistence in the since that all out station is directed ton satisfy the flying needs of the large number but not commercial message . The reasons behind this were that the productivity is bring down that that of the urban developed sector due to the following reasons . The income in the rural traditional sector is minimal and as a result savings which ar direct related to income level are in addition low . This leads to increased underutilization of resources and high levels of unemployment .

at that place is as well minimal use of machines and ultramodern engine room which is normally besides expensive for those people who dwell in the traditional plain sector to acquire and use . The level of rearing is in like manner low and thus the people s skills are really throttle . This also limits the capability of the people to employ modern technology and the result will be high approach of merchandise and low productivity . The quality of the products is also fishy since the resources are not plenteousy utilized . T here is no economies of scale since roughly! of the procurement carried out in this traditional undeveloped sector is in small scale . The radical is also very(prenominal) poor...If you want to get a full essay, order it on our website: BestEssayCheap.com

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