Get premium membership and access revision papers with marking schemes, video lessons and live classes.

Processing. Please wait.

Factors that lead to unfavorable terms of trade of a country

Answer Text:
Factors that lead to unfavorable terms of trade of a country:
-Prices of import increases while those of exports decline
-Prices of import remains constant while those of export declines
-Prices of import increase as the export remains constant
-Both prices increase, but for imports increases at a higher rate than export
-Both prices decrease, but for export decreases at a higher rate than import