Developing countries that emphasize the production of raw materials or agricultural goods may realize a long-run deterioration in the international terms of trade because of ?

A. relatively low import tariffs maintained by advanced countries
B. highly elastic demand for these products in advanced countries
C. declines in the supplies of these products on world markets
D. sluggish demand for these products in advanced countries

Correct Answer: sluggish demand for these products in advanced countries ✔

Last Updated: June 18, 2019