Constraints
At a Glance
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While it generally costs less to transport processed products than unprocessed commodities, these cost savings may be offset by several other factors.
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The constraints on setting up forward linkages include higher tariffs; higher and longer-term capital investment costs; the need to develop economies of scale to remain competitive; and specialized input requirements.
Key Resources
Topic Briefing
A processed product generally costs less to transport than an unprocessed commodity. However, these lower costs are often offset by other constraining factors, particularly in developing countries.