Geographical and Stage of Technological Development

Stage of Technological Development

 The quality and quantity of the commodities produced in a country depends on the technological development in that country. The developed countries of the world manufacture highly valued machineries and consumer products. As the technological development of the developing countries is not appreciable and it is difficult to convert the raw materials into consumer goods. They export therefore the raw materials. Hence, these countries have low incomes. On the other hand, the manufactured products increase for a country using its technological process. For example, rice production in Japan is 6,000 kg to a hectare. But in India, it is only 2,000 kg/ha.

Culture. Some products are manufactured in accordance with the culture and heritage of an area. Some important handcrafts, for example, Thanjavur plates, brass vessels of Kumbakonam, silk of Kanchipuram and the like are produced in line with the culture and tradition of the areas. And they have their own value in the international markets.

In this way, the demand and supply for manufactured commodities differ from place to place. Trade transfers the surplus of one area to the area where it is in deficit. Thus, trade helps with all the required commodities being made available to all places. Transport supports this activity.

Trade Balance. The value of the currency of a country depends on its ' trade balance'. It is the difference in money value between the commodities exported to and the commodities imported from any given country. When the value of the commdities imported by a country is smaller than the value of the commodities exported by it, then that country is said to have a 'favourable trade balance'. If it is the reverse of it, then it is said to be an 'unfavourable trade balance'. In the countries like Japan and the United States of America, export is far higher than the import and hence they have a favourable trade balance.

When there is demand in one country for a product produced in another country, then it has no option but to buy this product from that country. Conversely, the money currency of that country goes up in value. For example, for the products such as machinery and consumer goods manufactured in the developed countries such as Japan and the United States, there is market in most other countries of the world. Those countries which produce petroleum and export to all other countries have become the richest countries by themselves.