Question

Unstable export markets, worsening terms of trade, and limited access to the markets in advanced countries are just a few of the problems that have plagued nations in Africa, Asia, Latin America, and Middle East. For example, developing countries have worsening terms of trade because of:___________.A) rising prices of exports relative to importsB) the high price elasticity of supplyC) falling prices of exports relative to imports

Answer 1

Answer:

The correct answer is letter "C": falling prices of exports relative to imports.

Explanation:

Trade balance refers to the number of exports compared to the number of imports in a country during a given period. It is calculated by subtracting imports from exports. The result is also known as net exports. If the result is positive, there were more exports than imports in the period. If the result is negative, there were more imports than exports in the period.

The situation more developing companies have been facing is more inclined to have a deficit in net exports because of the increase in the price of imports compared to exports. Globalization has allowed people with an increasing income to access more imports at higher prices affecting the trade balance of their countries.

Answer 2

Answer:

C. Falling price of export relative to import

Explanation:

For example, developing countries have worsening terms of trade because of Developing nations have formed international commodity agreements (ICAs) between leading producing and consuming nations of commodities. To promote stability in commodity markets, ICAs have relied on production and export controls, buffer stocks, and multilateral contracts. For example, setting a minimum price for importers may help to falling prices of exports relative to imports 1. Trade p their solutions the high price elasticity of supply Unstable e plagued de because of rising prices of exports relative to Imports limited access to the markets in advanced countries are just a few of the problems that have and the Middle East