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What factors may lead to unfavourable terms of trade?

List factors that may lead to unfavourable terms of trade.

Answers


Maurice
(i) High demand for imports.

(ii) Competition from similar export products.

(iii) Depreciation/ Devaluation of local currency.

(iv) Low/ fall in demand for exports.

(v) Appreciation of foreign currency.

(vi) Higher increase in the price of imports.
maurice.mutuku answered the question on July 14, 2017 at 12:40

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