"Declining terms of trade" means ______________.

Question

Quizplus · Accepted Answer

Declining terms of trade refer to a situation where the prices of a country's exports decrease relative to the prices of its imports. This often affects countries that rely heavily on exporting raw materials or agricultural products, which tend to have lower value-added compared to the manufactured goods and services produced in richer, industrialized countries. Hence, the statement that most of the value-added commodities are produced in the rich countries that industrialized first (B) is correct in the context of discussing the dynamics that lead to declining terms of trade for less developed countries.

"Declining Terms of Trade" Means ______________