Which of the Following Is Not a Major Factor That

question 169

Multiple Choice

Which of the following is not a major factor that encourages developing nations to form international commodity agreements?

• A) Inelastic commodity supply schedules
• B) Inelastic commodity demand schedules
• C) Export markets that tend to be unstable
• D) Secular increases in their terms of trade

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Definitions:

Quotas

Limits set on the quantity of a product that can be imported or exported during a given timeframe, used as a trade policy tool.

Specified Time Periods

Designated or clearly defined intervals of time within which certain actions are performed or conditions are to be met.

Exchange Controls

Regulatory measures imposed by a government on the buying/selling of foreign currencies or on the movement of currencies out of a country.

Exchange Control

Restriction on importation of certain products or against certain companies to reduce trade and expenditures of foreign currency.