1. Suppose that an offer curve diagram has developed countries' exports on one axis and developing countries' exports on the other axis. Explain the predicted impact, other things equal, on the terms of trade of developing countries of relatively slow growth in demand for developing countries' goods by developed countries combined with relatively rapid growth in demand by developing countries for developed countries' goods.

2. "If countries are behaving rationally, they should always be willing to export more at a higher export price. Thus, one would not expect to see 'backward-bending' offer curves." Discuss.