Why might developing nations that focus their production on agricultural goods or raw materials experience a long-term decline in their terms of trade on the global market?

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Because the demand for these goods in developed countries is not very responsive to price changesDue to significant growth in global supply caused by policies promoting export expansionAs a result of weak demand for these goods in industrialized nationsAll of the above factors contribute to this decline

Explanation

Developing countries specializing in agricultural or raw material exports often face a long-term deterioration in their terms of trade because: (A) the demand for these products in developed countries tends to be inelastic, meaning buyers do not increase their purchases much even if prices fall; (B) export expansion policies lead to substantial increases in supply on the world market, which can drive prices down; and (C) demand in advanced economies for these goods is generally sluggish. Therefore, all these factors combined cause a decline in their international terms of trade.