1.Describe (do not just list) two problems developing countries face with international trade.

['MFI Countries in air of of its ovvning to a meeting w-ro the aigtuly daily against are wan wring unemploymc. a of other of the by for of of Many vmblems Me 10 which we frequently by rrxle, I-twe of world with cw-efully of x-urding to advantage. Let 's of the problen affecting &veLoping Lack of Diversity in Exports *'ill One ftv developing is the Of diversity in Rica. ft'* relies on a of its Yet. if ,veather significantly hams the crop, or if international Of coffa: fall rnatjca/ly. Costa Rican economy could devxstated. It would tetter rK't to svxcialue so completely. Greater diversity of exports would provide some insurance against problems that might EBet one particular prcxluct, In the Ineantime, however, countries are nerable to national international circumstan:es that are largely tryond their control. Declining Terms of Trade Another closely related problem concerns the reliance Of many developing countries on 'es primary commodities for ex port Pri mary commodi ties are unprcXe ssed raw materials agricultural pn_xlucts, as coffee, sugar. tea. cocoa. and rubber. These tylxs of prxlucts have exvxrienced a problem known as declining tern trade Over tirne, the prices of B)or-country exports (especially primary commcxiities) have declined relative to the prices of 'mr-country imports. Declining terms of trade is a long-tenn phenomenon. Demand for poor-country exports has tapered off (and therefore The relative price of rhe exports has decreased), in part because Of the development Of synthetics and developed-country trade restrictions. At the same time, the prices of man- ufaclured g'xxls and petroleum pmducts imported into poor countries have generally increased (because of market rx)wer in develorxd-country industries and the mukd lxwer of the Organization of Petroleum Exporting Countries). As a result.