Which of the Following Could Explain Why the Terms of Trade

question 15

Multiple Choice

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

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

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Definitions:

Bidders

Individuals or entities that offer a price for goods, services, or assets in an auction or competitive bid process.

Auction Information

Details and data related to items, bidding process, and rules of an auction, provided to potential participants.

Liquidated Equipment

Assets or equipment that have been sold off, typically for the purpose of repaying debt or raising funds.

Maintenance Records

Documentation of all the repairs, upkeep, and inspections carried out on equipment or property to ensure it remains in good working condition.