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One of the axes of the policies to overcome\npoverty is centred on the existence\nof products or services with territorial\nidentity that links territories with markets.\nRamírez introduces the analysis of\nthe economy based on identity, on the\neconomic theory mainstream, employing\nthe analytical categories of supply\nand demand in the context of the market\neconomy. The author conceives territorial\nidentity as an additional element to the\nheterogeneity of goods and services that\nthe consumer values for the utility that\nthey lend. On the side of the supply, the\nproducers must face costs to be sure of\nthe valorisation of the attributes tied to\nthe cultural identity. The processes of adaptation\nto the new production demands\nrequire investments in physical, human,\nsocial and natural capital. In this way, the\nproducers are guided towards a strategy\nof valorising the cultural identity only\nwhen the expected benefits outweigh the\ninvestment costs necessary to consolidate\nthis identity.
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