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Economics (AS & A Level) · Oct / Nov 2025 · Paper 12 · Question 27

9708The reasons for international trade

What will definitely lead to an improvement in the terms of trade?

  1. AExport prices fall whilst import prices rise.
  2. BExport prices rise by the same amount as import prices.
  3. CExport prices rise slower than import prices.
  4. DExport prices rise whilst import prices stay the same.

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Correct answer: D. Export prices rise whilst import prices stay the same.

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