For many of the less developed countries,what is the situation for their terms of trade?
A) exporting low-valued commodities and importing high-valued ones
B) exporting low-valued commodities and importing low-valued ones
C) exporting high-valued commodities and importing high-valued ones
D) exporting high-valued commodities and importing low-valued ones
E) several exports and no imports

Question

Quizplus · Accepted Answer

Less developed countries often have a comparative advantage in producing primary commodities such as agricultural products and minerals. However, these commodities typically have lower values in international markets compared to manufactured goods or high-tech products that the same countries need to import. As a result, the terms of trade are unfavorable, meaning that they have to export more volume of their primary commodities to be able to import a smaller volume of high-valued products. This results in a trade deficit and limits their economic growth and development.

For Many of the Less Developed Countries,what Is the Situation