Cmac9914 Cmac9914

26-01-2022
Social Studies

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how does trade diversification help to minimize trade deficit

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mosesmills2021 mosesmills2021

26-01-2022

Answer:

Explanation:

Diversification helps countries to hedge against adverse terms of trade shocks by stabilizing export revenues. It enables them to direct positive terms of trade shocks into growth, knowledge spillovers and increasing returns to scale.

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