LDCs are reluctant to pursue development through the export of primary products because of ____ and _____ ?
Correct answer: D. The downward trend in commodity prices the volatility of primary products real prices
- A. The upward trend in commodity prices the stability of primary products real prices
- B. The upward trend in commodity prices, the volatility of primary products real prices
- C. The downward trend in commodity prices the stability of primary products real prices
- D. The downward trend in commodity prices the volatility of primary products real prices
Explanation
Primary-export dependence is risky because commodity prices have shown a long-run downward tendency relative to manufactured goods and are highly volatile. These conditions make export earnings and development planning uncertain.
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