JAMB UTME - Economics - 1999 | Green Bridge CBT

Question 1 Report

Favorable terms of trade is important to a country because it facilities?

economic prosperity for importers and exporters

export of hard currency by the government

economic prosperity for country Correct answer

import of hard currency by the government

Answer Details

Favorable terms of trade is important to a country because it facilitates economic prosperity for the country. It refers to the ratio at which a country can trade its exports for imports from other countries. When the terms of trade are favorable, a country can exchange a smaller quantity of exports for a larger quantity of imports. This means that the country can import more goods and services than it exports, which can lead to increased economic growth and prosperity. Therefore, a country with favorable terms of trade can import hard currency to finance its imports, which can lead to greater economic development.

Read lesson note on International Trade (JAMB)

Read lesson note on International Trade And Balance Of Payments (WAEC)






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