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Impact of terms of trade - essays


Question 1

An improvement on the current account of the balance of payments might come about as a result of a deterioration in the terms of trade. Explain why this might be so.

Question 2

(a) Identify reasons for changes in the terms of trade.
(b) Identify and explain reasons for the deterioration of the terms of trade in many developing countries.
(c) Evaluate the impact on developing countries of a long term worsening in their terms of trade.