Historical note: Changes in demand for and supply of agricultural goods in less-developed countries have had what effect on these countries' terms of trade?

Question

Quizplus · Accepted Answer

Changes in demand for and supply of agricultural goods in less-developed countries often lead to lower export prices for these goods. Since the terms of trade are defined as the ratio of export prices to import prices, a decrease in export prices, without a corresponding decrease in import prices, would lower the terms of trade for these countries.

Historical Note: Changes in Demand for and Supply of Agricultural