3.lack of domestic production: government of many countries practically don't have anything to offer, the keep on wasting the little resources available to their reach, failing to encourage local production, the government should look into locally made goods, this will avail them the opportunity to do business with countries that are interested in the product and services, as the case may be, they should make it their priority to lure local investor, reach a compromise with them, allow them to produce at a minimal taxing rate, this will enhance the domestic needs of the country, No doubt we need each to survive but not in everything.
This doesn't cause inflation. If there are shortages of supply causing a rise in demand and, in effect, the prices of a particular product, the market will respond by ramping up production and the prices will begin to stabilize. You'll see cycles of this happen in a lot of sectors. For there to be significant inflation, you would need shortages in many sectors combined for the overall CPI to be significantly effected.