1. Trade problems of the developing countries and their solutions Unstable export markets, worsening terms of...

1. Trade problems of the developing countries and their solutions

Unstable export markets, worsening terms of trade, and limited access to the markets in advanced countries are just a few of the problems that have plagued developing nations in Africa, Asia, Latin America, and the Middle East. For example, developing countries have worsening terms of trade because of ________ (falling prices of exports relative to imports/ rising prices of exports relative to imports/ the high price elasticity of supply).

Developing nations have formed international commodity agreements (ICAs) between leading producing and consuming nations of commodities. To promote stability in commodity markets, ICAs have relied on production and export controls, buffer stocks, and multilateral contracts. For example, the fair trade system may help to _______ (increase the number of middlemen selling farmer's products/ increase the income of farmers in developing nations/ decrease the markup price that retailers charge on farmer's products).

Expert Solution

Rahul Sunny answered 3 weeks ago

Discuss at least four of the major trade-specific problems of the Developing Countries

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