Terms of trade of less developed countries are generally unfavourable because
A)They export primary goods
B)They export capital goods
C)They export few goods
D)They import few goods

Question

Quizplus · Accepted Answer

Less developed countries often export primary goods, which tend to have lower and more volatile prices compared to manufactured goods, leading to unfavourable terms of trade.

Terms of Trade of Less Developed Countries Are Generally Unfavourable