Paper 3 · International Trade
Developing countries often gain less from free trade than industrial countries do because they
Aexport low-priced primary products and import costly manufactured goods
Bare unable to produce any goods at all that other countries would wish to buy
Ccharge higher tariffs on imports than industrial countries charge
Dtrade only with their immediate neighbours rather than worldwide
Explanation: Primary products fetch low and unstable prices while manufactures are dear and their prices rise steadily, so the terms of trade move against the primary exporter: each year it must sell more tonnes of crops or ore to buy the same machine.
Derived from ZIMSEC Economics 4050/3 Paper 3, June 2023, Q3