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 Form 4 Business Studies questions and answers on international trade

Explain the factors that may lead to deteriorating terms of trade in a country.

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Answer Text:
-Poor infrastructure which discourages investors making local goods less competitive
-High production costs that make local goods expensive
-Insecurity that discourages investors and tourism
-Corruption that may lead to extra costs on projects
-Competition from other countries which makes it difficult for the Kenya goods to sell.


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