One reason for worsening terms of trade is the increase in prices for primary commodities.

Question

Quizplus · Accepted Answer

Worsening terms of trade typically occur when the prices of a country's exports fall relative to the prices of its imports, not necessarily due to an increase in prices for primary commodities. An increase in prices for primary commodities could actually improve the terms of trade for countries that are net exporters of those commodities.

One Reason for Worsening Terms of Trade Is the Increase