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For a country with one important exported commodity (such as soil) Select one: a. a...

For a country with one important exported commodity (such as soil)
Select one:
a. a rise in its price in international exported markets will improve the country's terms of trade.
b. its terms of trade will be unaffected by a change in its price
c. a rise in its price will be helpful to the terms of trade and balance of payments only if world demand for it is elastic
d. a fall in its price will improve the terms of trade?

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Answers (2)

isaaq
4 months ago
Answer
c. a rise in its price will be helpful to the terms of trade and balance of payments only if world demand for it is elastic

Exports and imports are important for the development and growth of national economies because not all countries have the resources and skills required to produce certain goods and services. Nevertheless, countries impose trade barriers, such as tariffs and import quotas, in order to protect their domestic industries.
Gaby
3 weeks ago
Answer
c. a rise in its price will be helpful to the
terms of trade and balance of payments
only if world demand for it is elastic
Exports and imports are important for the
development and growth of national
economies because not all countries have
the resources and skills required to
produce certain goods and services.
Nevertheless, countries impose trade
barriers, such as tariffs and import quotas,
in order to protect their domestic
industries.
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