“In a recent recession the losses sustained by the developing countries through a decline in raw-material prices by far outweighed any foreign aid given over several years.” Explain.
What will be an ideal response?
Essentially this is a statement of fact that points out how vulnerable the developing countries are and how dependent they are on the advanced countries as markets for their products. If there is a slump in the industrialized world, the decline of raw-material demand sends prices plummeting for their exports. That more than offsets the foreign aid given over several years.
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When there is a shortage of dollars in the foreign exchange market, the
A) U.S. exchange rate will appreciate. B) supply curve of dollars shifts rightward to restore the equilibrium. C) demand curve for dollars shifts leftward to restore the equilibrium. D) U.S. exchange rate will depreciate. E) supply curve of dollars shifts leftward to restore the equilibrium.
Is there a similarity between a monopoly and a monopolistically competitive firm in the long run? Explain your answer
What will be an ideal response?