Are the terms of trade a problem, Business Economics

Assignment Help:

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.


Related Discussions:- Are the terms of trade a problem

Production factors, factors that affects sthe volume of production in econo...

factors that affects sthe volume of production in economy

Balance of payments, BALANCE OF PAYMENTS: The record of all transactio...

BALANCE OF PAYMENTS: The record of all transactions (trade and financial) of the residents of one country with the rest of the world is Balance of Payments (BoP). The directio

General agreement on tariff and trade, Question 1: (a) Explain the cor...

Question 1: (a) Explain the core principles of the General Agreement on Tariff and Trade (GATT). (b) Do you think the additional principles introduced by the WTO in 1995 c

The likely effects of a recession on a government's budget, QUESTION ...

QUESTION Explain the relationship between scarcity, choice and opportunity cost. "In a capitalistic system, Consumer Sovereignty is the key". Explain and discuss this sta

What are the assumptions of dependency theory, What are the assumptions of ...

What are the assumptions of dependency theory? The assumptions of dependency theory: Dependency theory extends Marx is theory of surplus value to international relationship

Quantitative methods, What is matrix algebra, give some examples and its ty...

What is matrix algebra, give some examples and its types

What is Aid, What is aid? Aid is the administered transfer of resource...

What is aid? Aid is the administered transfer of resources by a donor country or international agency or non-government organisation to less developed countries to encourage e

Average and standard deviation of monthly return, Report the average and st...

Report the average and standard deviation of monthly return for your corporation and the S&P 500 on the spreadsheet.  Use the spreadsheet functions to calculate these: =AVERAGE(dat

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd