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- Creates a state of dependency on developed countries/ slows exploitation of national resources
- Hinder diversification of the economy.
- The country experiences unfavorable balance of trade/ retards economic development.
- Whenever there is poor relationship with the trading partner the country experiences shortage of the import goods.
- The country spends her foreign exchange reserve on imports/ faces devaluation of her local currency.
- Hinder growth of home infant industrialization.
sharon kalunda answered the question on April 23, 2019 at 07:46
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