Look at this graph and answer:
a) Who produces more manufactured goods, MEDCs or LEDCs? MEDCs
b) And raw materials? LEDCs
c) What happens to the value of manufactured goods? (increase/decrease price) The manufactured goods are always more expensive than the raw materials.
d) And with raw materials? Their value go up and drop, but always go up a little.
e) Which are the consequences for LEDCs:
- They sell more raw materials and increase their profit
- They buy manufactured goods at high prices and sell raw materials at low prices and then increase their debt.
a) Who produces more manufactured goods, MEDCs or LEDCs? MEDCs
b) And raw materials? LEDCs
c) What happens to the value of manufactured goods? (increase/decrease price) The manufactured goods are always more expensive than the raw materials.
d) And with raw materials? Their value go up and drop, but always go up a little.
e) Which are the consequences for LEDCs:
- They sell more raw materials and increase their profit
- They buy manufactured goods at high prices and sell raw materials at low prices and then increase their debt.
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