Declining terms of trade refers to
A)a lowering of trade barriers around the world.
B)products from developing nations that compete primarily on price rather than quality.
C)lower prices for exports but steady or rising prices for imports.
D)higher interest rates for developing states that defaulted on loans.

Question

Quizplus · Accepted Answer

Declining terms of trade means that a country's export prices are decreasing while the prices of imports remain the same or increase. This can lead to a decrease in the country's income and may result in a trade deficit. This is often seen in developing nations that rely on exports of primary commodities, as the prices for these goods tend to be volatile and subject to global market forces.

Declining Terms of Trade Refers to