Why is export price instability judged to be a problem, International Economics

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Why is export price instability judged to be a problem

Problem

1. Why is export price instability judged to be a problem for the LDCs? Why might it seem more likely to occur for LDCs than for ICs?

2. Why should we be concerned about a long-run deterioration in the commodity terms of trade of the LDCs? How can such a deterioration be related to the concept of immiserizing growth discussed in Chapter 11?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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