West African countries are experiencing worsening terms of trade because
Answer Details
West African countries are experiencing worsening terms of trade primarily because they are primarily producers of raw materials such as oil, cocoa, and minerals. This means that they are heavily reliant on exporting these commodities to other countries, but the prices they receive for these exports have been declining over time.
Additionally, the currencies of many West African countries have been overvalued, which means that their exports are more expensive for other countries to purchase. This makes it harder for them to compete with other countries that produce similar goods.
Furthermore, West African countries tend to import more machinery and manufactured goods than they export. This means that they are spending more money on imports, which can further weaken their economy.
Overall, these factors contribute to the worsening terms of trade for West African countries, making it harder for them to generate income and improve their economic conditions.