Are the terms of trade tot a problem problem the terms of, Ask an Expert

Economics

Are the terms of trade (ToT) a problem?

Problem: The terms of trade (ToT) of a country fall when its import prices rise quicker than the price of its exports. Less Developed Country face a continuous deterioration of their ToT therefore a larger volume of exports has to be sold to finance a specified amount of imports.

Implications: Less Developed Countries are along with a comparative advantage within primary product are facing long term decline into export earnings through a specified volume of exports a trend made worse by increasing capacity through growth as well as the low PED for agricultural goods.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9580139

Have any Question?Write your Review or question?

Related Questions in Business Economics

Please explain what is ssd and does the device driver

Please explain what is SSD? and Does the device driver interface to a disk change dramatically if the disk is a SSD (solid state disk)? Explain why?

How to determine the points for graphically representing

How to determine the points for graphically representing the equilibrium(600000) which was derived from the equation, D=1500000-60000W, S= 120000W-1200000, with wage rate being $15 per hour at equilibrium.

What are some challenges in delivering health services in

What are some challenges in delivering health services in the peripheral areas?

A student recieves the grades shown below with an a worth 4

A student recieves the grades shown below, with an A worth 4 points, a B worth 3 points, a C worth 2 points, and a D worth 1 point. What is the students grade point average? A in 1 four - credit classes C in 1 three - cr ...

A market researcher wishes to determine the proportion of

A market researcher wishes to determine the proportion of American women who shop online. The results must be accurate at the 90% level of confidence with a maximum error of 2%. Calculate the minimum sample size needed t ...

Two products are manufactured by a company product 1 brings

Two products are manufactured by a company. Product 1 brings a profit of $48 per unit and product 2 earns a profit of $36 per unit. There are 120 1b. of raw material on hand. For production, each unit of Product 1 requir ...

Since quotas do not raise revenues but have the same trade

Since quotas do not raise revenues but have the same trade effects as do tariffs, why not just have tariffs? Why would the government impose quotas when tariffs not only would reduce imports but also bring in new revenue ...

You want to be a millionaire when you retire in 35 yearsa

You want to be a millionaire when you retire in 35 years. a. How much do you have to save each month if you can earn an annual return of 10.7 percent? (Do not round intermediate calculations and round your answer to 2 d ...

1 a certain compact disc player randomly plays each of 10

1. A certain compact disc player randomly plays each of 10 songs on a CD. Once a song is played, it is not repeated until all the songs on the CD have been played. In how many different ways can the CD player play the 10 ...

A firm is considering the two mutually exclusive

A firm is considering the two mutually exclusive investments projects. Project Alpha requires an initial outlay of $600 and will return $160 per year for the next seven years; Project Beta requires an initial outlay of $ ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert