Question

Poorer developing countries which often produce and export primary commodities tend to face unfair _____________________ in relationship to rich countries that produce manufactured (capital) goods. Question 15 options:

Answer 1

Developing countries often face unfair trade terms when exporting primary commodities, leading to exploitation and economic losses. This is due to practices like protectionism and dumping by wealthy nations.

Step-by-step explanation:

Poorer developing countries which often produce and export primary commodities tend to face unfair trade terms in relationship to rich countries that produce manufactured (capital) goods. These unfair trade terms are a result of several factors, including unfair competition with developed countries, low cost production, and the exploitation of local economies by more wealthy nations.

In the 1950s through to the 1970s, developing countries feared economic losses and political instability as a result of being open to global flows of goods, services, and capital. They were concerned that foreign trade with high-income trading partners would lead to exploitation and loss of domestic control. The wealthy countries, practicing protectionism, often block agricultural exports from low-income countries, offer subsidies, and sometimes dump excess goods in these poorer nations, which can undercut local production and drive down prices, harming local farmers and businesses.

Answer 2

Poorer developing countries which often produce and export primary commodities tend to face unfair _______exchange values______________ in relationship to rich countries that produce manufactured (capital) goods.

Step-by-step explanation:

Unfair exchange value means that rich countries that use the primary commodities of poorer developing countries to produce manufactured goods, especially capital goods, sell the manufactured goods at values that are not real or too exorbitant. This practice contributes to the unfairness of international trade. It also means that the prices at which the primary commodities are bought form the poorer countries are too low when compared with the prices of the manufactured capital goods sold by rich countries to poorer countries.