Many developing countries contend that they face worsening terms of trade because the prices they receive for exports have increased, while the prices they pay for imports have decreased.

Question

Quizplus · Accepted Answer

The figure shows a decreasing trend in the global market for tin, which indicates a decrease in prices. Therefore, developing countries would face improving terms of trade rather than worsening terms of trade as stated in the statement.

Many Developing Countries Contend That They Face Worsening Terms of Trade