Climate has a direct effect on agriculture of the country. Due to favourable climate there is specialisation of certain crops in some areas.
For example, due to hot and humid climate there is specialisation of rice crops in Southeast Asian countries. So, they have developed trade of rice in the world.
The quality of grass depends upon climate. In cool climates, soft and juicy grass grows, so such area has developed pastoral activities and trade of animal products.
For example, Australia and New Zealand have become some of the leading exporters of butter, cheese, condensed milk powder, mutton, etc.
Climate also affects the growth and type of forest in the country. Due to a cool climate in Canada, Russia, Scandinavian countries, the coniferous forest grows which provides softwood; it has great demand in the world market. Therefore, Canada, Norway, Sweden, Finland, Russia are leading exporters of wood.
In some countries, there is a specialization of certain goods due to specific climates.
For example, in snow-covered areas there is more production of woolen goods; therefore, there is more export trade of woolen goods from the Jammu and Kashmir states of India.
