Provide a concise statement about the relationship between a ...

[nummyann]

Provide a concise statement about the relationship between a developing country's emphasis on the export of traditional commodities and:
 
  (a) export earnings stability; (b) comparative advantage;
  (c) terms of trade.

Question 2

Which of the following is not an upper-middle income country?
 
  a. Brazil
  b. South Africa
  c. Pakistan
  d. Argentina

[britb2u]

Answer to Question 1

(a) Traditional commodities may tend to experience greater price fluctuations; (b) less developed countries tend to have a comparative advantage in traditional commodities;
(c) terms of trade for traditional commodities may tend to fall over time according to the Prebisch-Singer thesis.

Answer to Question 2

C

[nummyann]

Thanks for the timely response, appreciate it

[epscape]

Gracias!