If primary products are a high percentage of a country's exports then large changes in the price of these commodities could influence the _____ .

Question

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The terms of trade refer to the ratio of export prices to import prices. If primary products constitute a high percentage of a country's exports, significant fluctuations in their prices can directly affect the country's terms of trade, impacting the value of what the country can import in exchange for its exports.

If Primary Products Are a High Percentage of a Country's