Question 079
A decline in the price of imports or a rise in the price of exports will:
a. improve the terms of trade.
b. worsen the terms of trade.
c. have no effect on the terms of trade.
d. none of these
2006-09-16 15:47:12 · 15 answers · asked by WOW 2 in Business & Finance ➔ Personal Finance
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a. improve the terms of trade
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2006-09-16 15:51:17 · answer #1 · answered by Eunice Melinda Saunders 2 · 0⤊ 2⤋
The answer is b. If two countries are trading goods, let's say Country A is trading car parts for Country B's microchips. If A enacts a tariff on B's goods, making the price of imports higher, trade will suffer. If B can't afford to export as much because the price is higher, then they won't trade with A. This would make the terms of trade worse. I think.
2006-09-16 22:51:57 · answer #2 · answered by spanishmarlena 2 · 0⤊ 0⤋
c. It will have no effect on terms of trade. It affects the trade deficit.
2006-09-16 22:58:12 · answer #3 · answered by Wait a Minute 4 · 0⤊ 0⤋
You didn't give us a question you gave us a multiple choice so I choose D
2006-09-16 22:56:36 · answer #4 · answered by Medical and Business Information 5 · 0⤊ 0⤋
a
2006-09-16 22:48:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I should give you a wrong answer so you fail.
2006-09-16 22:48:35 · answer #6 · answered by BillsSabres07 1 · 0⤊ 0⤋
c
2006-09-17 00:28:50 · answer #7 · answered by larry n 4 · 0⤊ 0⤋
b
2006-09-16 22:49:31 · answer #8 · answered by Anonymous · 0⤊ 0⤋
d
2006-09-16 22:49:05 · answer #9 · answered by delta s 4 · 0⤊ 0⤋
b
2006-09-16 22:48:14 · answer #10 · answered by DeAd DiScO 4 · 0⤊ 0⤋