(iv) Open Economy: FR model ignored the role of foreign trade as it assumed a closed economy model. In the 2nd phase when agri. product decreases the TOT goes against industrial sector. This would occur in the presence of closed economy. But if the model is made open such would not happen as the goods could be imported in the presence of then-scarcity. This was especially observed in case of Japan which imported cheap farm products to improve her TOT (terms of trade) (v) Supply of Land in Long Run: FR model assumed that in the process of economic development the supply of land remained fixed. But it is not true. The supply of land can be increased in case of long run. (vi) Commercialization of Agri. And Inflation: According to FR model when 3rd phase starts the agri. sector becomes commercialized. But it is criticized by saying that this phase does not start so easily The shifting of labor to industrial sector will create labor shortage in agri. sector. This will create shortage of food stuff leading to increase their prices. In this way, the inflation will generate which may obstruct the process of development (vii) Low Productivity in Agri Sector: According to Jorgenson it has been observed that there has been a very slow rise in the productivity of agri. sector. Consequently, the surplus will hardly be created in agri. sector. Accordingly, agri. sector will not contribute to development Thus the growth requires that the surplus must be generated and it should persist.