The major obstacles for economic development of the smaller nations of Oceania are their relative isolation and the lack of natural resources. The majority of these states are poor in natural resources, thus they are not really able to engage into proper industrialization and develop that sector, but instead they focus on tourism, as the natural beauty is their main advantage. Also, these nations are relatively isolated, far away from the other larger and mainland nations, so even if they were industrialized and had natural resources, they wouldn't have been competitive because the expenses for transportation would be very high, thus lifting the price of the products as well.