Which of the following is NOT a major factor that encourages developing nations to form international commodity agreements?
A) inelastic commodity supply schedules
B) inelastic commodity demand schedules
C) export markets that tend to be unstable
D) secular increases in their terms of trade

Question

Quizplus · Accepted Answer

Developing nations are encouraged to form international commodity agreements when they face factors such as inelastic commodity supply or unstable export markets. However, secular increases in their terms of trade (i.e. a long-term trend of prices for their exports increasing relative to prices for their imports) would not necessarily incentivize them to form such agreements as they would be benefiting from the price increases already.

Which of the Following Is NOT a Major Factor That