What are the difficulties in the changes of a country's terms of trade

1.	What are the difficulties in the changes of a country's terms of trade ?
Answer» ong>Explanation: An abrupt change in a country's terms of trade (e.g., a drastic fall in the PRICE of a primary product that is a country's main export) can cause SERIOUS balance-of-payments PROBLEMS if the country depends on the foreign exchange earned by its exports to pay for the import of its manufactured goods and CAPITAL ...

What are the difficulties in the changes of a country's terms of trade ?

Answer»

ong>Explanation:

An abrupt change in a country's terms of trade (e.g., a drastic fall in the PRICE of a primary product that is a country's main export) can cause SERIOUS balance-of-payments PROBLEMS if the country depends on the foreign exchange earned by its exports to pay for the import of its manufactured goods and CAPITAL ...

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What are the difficulties in the changes of a country's terms of trade ?

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