Economics • Economic BasicsMedium
In the context of Sikkim economic geography, how does difficult mountainous terrain primarily impact the cost structure of infrastructure development and trade?
A. It decreases transportation costs due to shorter air distances.
B. It escalates capital expenditure and logistics expenses due to rugged topography.✓ Correct Answer
C. It eliminates the need for warehousing facilities across districts.
D. It guarantees uniform distribution of industrial units across all elevations.
💡 Solution & Explanation
Rugged Himalayan topography creates severe logistical bottlenecks, leading to higher per-kilometer construction and maintenance costs for roads, bridges, and power grids. Lower freight efficiency contradicts the notion of reduced transportation expenses. Infrastructure deficits in hilly terrain require specialized engineering solutions and heavier capital outlays.
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