Which of the Following Could Explain Why the Terms of Trade

question 2

Multiple Choice

Which of the following could explain why the terms of trade of developing countries might deteriorate over time?

• A)Developing country exports are too diverse.
• B)Commodity export prices are solely determined by developing countries.
• C)Developing country exports consist mainly of manufactured goods.
• D)Commodity export prices are determined in highly competitive markets.
• E)Developing country exports consist mainly of primary products.

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