Total Marks 10 Starting Date Friday, January 12, 2024 Closing Date Thursday, January 18, 2024 Status Open Question Title Analysis of Terms of Trade Question Description The case: Pakistan has been experiencing fluctuations in its export and import prices over the years. This is one of the important factors contributing to the persistent current account deficit. High import prices cause inflationary pressures in the economy while higher export prices make Pakistan’s products more uncompetitive in the international market. Imagine you are an economic analyst; your task is to analyze the commodity terms of trade for Pakistan, focusing on the period between 2000 and 2020. Assume 2000 as the base year (N = 100). In 2020, suppose export prices (PX) increased to 270, while import prices (PM) rose by 350. Requirements: Find the amount by which commodity terms of trade have declined from the year 2000 to 2020 by using the given information. Explain any two economic factors that play a crucial role in the deterioration of commodity terms of trade for Pakistan. Page Size: 10
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Total Marks 10
Starting Date Friday, January 12, 2024
Closing Date Thursday, January 18, 2024
Status Open
Question Title Analysis of Terms of Trade
Question Description
The case:
Pakistan has been experiencing fluctuations in its export and import prices over the years. This is one of the important factors contributing to the persistent current account deficit. High import prices cause inflationary pressures in the economy while higher export prices make Pakistan’s products more uncompetitive in the international market. Imagine you are an economic analyst; your task is to analyze the commodity terms of trade for Pakistan, focusing on the period between 2000 and 2020. Assume 2000 as the base year (N = 100). In 2020, suppose export prices (PX) increased to 270, while import prices (PM) rose by 350.
Requirements:
Find the amount by which commodity terms of trade have declined from the year 2000 to 2020 by using the given information.
Explain any two economic factors that play a crucial role in the deterioration of commodity terms of trade for Pakistan.
Page Size:
10
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