Deprecated: Return type of AdvancedAds\Abstracts\Data::offsetGet($offset) should either be compatible with ArrayAccess::offsetGet(mixed $offset): mixed, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice in /home/erudites/web/erudites.ng/public_html/wp-content/plugins/advanced-ads/includes/abstracts/abstract-data.php on line 431
A Country's Terms Of Trade Can Be Improved By ________? - Erudites Academy

A country’s terms of trade can be improved by ________?

by | Oct 21 | Economics JAMB | 0 comments

A. Revaluation of currency
B. Collective bargaining
C. Reducing demand for imported goods
D. Imposing lower export duties

Correct Answer:

Option C – Reducing demand for imported goods

Explanation

A country can purchase more imported goods for every unit of export that it sells when its TOT improves. An increase in the TOT can, therefore, be beneficial because the country needs fewer exports to buy a given number of imports.To improve the terms of trade, imports have to be reduced to atleast match up exports

Users Also Read These:

Copyright warnings! Do not copy.

Earn Your Degree In 3 Years Without Writing UTME. Click Here To Learn More.