Which of the following could partially explain why the terms of trade of developing countries are...
Which of the following could partially explain why the terms of trade of developing countries are unlikely to improve over time?
a. Developing-country imports mainly consist of primary products
b. Prices of manufactured goods will fall relative to primary commodity prices
c. Commodity export prices are determined in highly competitive markets
d. Developing-country exports mainly consist of manufactured goods
Homework Answers
c. Commodity export prices are determined in highly competitive markets
Explanation: Developing countries mainly export commodities and the price of commodities are determined in a highly competitive market.
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Which of the following could partially explain why the terms of
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