Economics · May / June 2020 · Paper 11 · Question 28

Many low-income countries rely on exports of raw materials such as coffee or iron ore to earn them foreign currency. What is a disadvantage of this?

1. ACountries have a constant demand for raw materials.
2. BInternational trade only benefits the importing countries.
3. CIt is necessary for low-income countries to belong to a free trade area.
4. DRaw materials have fluctuating prices.

As printed in the paper