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Short answer questions


Question 1

Identify the economic problems faced by developing countries when their economies are dependent on the export of primary products.

Question 2

Explain the likely impact of the rapid rise in metal prices on the terms of trade of developing countries, which have significant reserves of metals.

Question 3

Explain two reasons why it may be more beneficial for a country to specialise in the production of manufactured goods, rather than primary products.

Question 4

Describe the difference between a regional trade agreement and a bilateral trade agreement.

Question 5

Examine how developing countries, which rely on 'soft commodities' (e.g. sugar), have been affected by the rapid rise in metal prices on world markets.