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The main industry that gives Cyprus a comparative advantage is agriculture because of its climate and its cultivable land.

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Question 1: The main industry that gives Cyprus a comparative advantage is agriculture because of its climate and its cultivable land. The broad agricultural sector, despite the reduction of its contribution to the Gross Domestic Product and total employment, continues to be a fundamental sector of the Cyprus economy. During the period 1960-1974, the agricultural sector expanded rapidly, but in 1974 it was severely affected by the Turkish invasion and occupation of part of Cyprus. The Turkish forces occupied and displaced non-Turkish population from an area which accounted for 46% of crop production and much higher percentages of citrus (79%), cereals (68%), tobacco (100%), carrots (86%) ...read more.


Nevertheless, the occupation of a great part of Cyprus is still causing problems in the agricultural sector, particularly with respect to the difficulties faced by displaced farmers, the shortages of fodders, the rational development of water resources, the spread of plant and animal diseases and many others. Despite the blows incurred by the Turkish invasion, the broad agricultural sector contributed, in 2001, at current prices, some �210,2 million or about 3,6% to GDP and employed approximately 23,4 thousand persons or 7,1% of the total economically active population. ...read more.


The contribution of the other sub-sectors was as follows: Ancillary production (milk and grape products processed on-farm) about 4,6%, forestry 0,7% and others 2,1%. Development policy aims at restructuring and upgrading the agricultural sector in order to be able to successfully cope with the conditions prevailing in the European Union and international competition and for exploitation of the opportunities created by European Union orientation and the General Agreement on Tariffs and Trade (GATT). Some state that it is wrong for a country to concentrate all the recourses in only one industry because recourses can be used efficiently and effectively in other industries as well. Beside the agricultural sector Cyprus' manufacturing and tourism industry are also profitable. ...read more.

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