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

      

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

  

Answers


Davis
-High prices of imports. Lower prices exports compared to
countries exports.
- Advice/fall in exchange rates / depreciation of local currency
which makes the imports expensive
- Appreciation of foreign currency which makes imports more
expensive
- Low / fall in demand for country’s exports more expensive
- Competition (from similar products of other countries in the
same market which leads to decrease hence lower export prices
- Devaluation of local currency thus making imports more
expensive making exports cheaper
Githiari answered the question on September 22, 2017 at 20:17


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