Over time,the terms of trade of Latin American countries have generally ________,and the terms of trade of developed countries have generally ________.

Question

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Historically, Latin American countries have exported mainly primary products, such as raw materials and agricultural products, while developed countries have exported mainly manufactured goods with higher value-added. This has resulted in a lower relative price for primary products, leading to a worsening of the terms of trade for Latin American countries over time. In contrast, developed countries have seen an increase in the relative price of manufactured goods, leading to an improvement in their terms of trade.

Over Time,the Terms of Trade of Latin American Countries Have