Developing Countries Might Be Unable to Respond Smoothly to Changing

question 28

Multiple Choice

Developing countries might be unable to respond smoothly to changing international price signals because of

• A)a lack of government regulation.
• B)an abundance of skilled labor.
• C)inelastic supply curves.
• D)limited foreign exchange.

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Definitions:

Commodity Chain

The network of production and labor processes by which a product becomes a finished commodity. By following the commodity chain, it is evident which countries gain profits and which ones are being exploited.

Division of Labor

The allocation of different tasks to different people or groups in a society, contributing to economic efficiency and specialization.

Core Nations

Countries that dominate global trade and economics, often through technological advancement and wealth.

Peripheral Countries

Nations that are less developed than the semi-peripheral and core countries, often characterized by low levels of industrialization, and significant economic dependence on core countries.