Suppose a large country experiences economic growth which results in a reduced willingness to trade. The country’s terms of trade will because the fall in demand for imports will cause the price of its exports to relative to the price that it has to pay for its imports.

The correct answer is letter "B": improve; rise.

Explanation:

Terms of Trade measures the efficiency of a country's trade. It is a ratio which compares the exports of a country with its imports. It is calculated by dividing the export value by the import value, and by multiplying the result by one hundred (100). A terms of trade figure higher than 100, means a country exporting goods at a higher value than its imports.

Given the case that there is no willingness to trade in an economy after a growth, the most possible scenario to take place is that the trade terms will improve as a result of the decrease in the demand of imports and assuming the level of exports keeps at the constant level that allowed the economic growth or if it even rises.

answer: b) the us is the leading importer but not the leading exporter.

extra info:

the u.s is the largest importer but it is not the largest exporter as china sits on the top of the table when it comes to leading exporters.

but u.s is not far from first,

they rank in 2nd globally as the worlds largest exporter.

happy to

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