Tag Archives | International Trade

Single Factorial Terms of Trade (With Criticisms) | Economics

The concept of income terms of trade attempted — a correction in the net barter terms of trade for changes in the volume of exports. Jacob Viner made another modification over the net barter or commodity terms of trade. He corrected the commodity terms of trade for changes in factor productivity in the production of export goods. The concept of [...]

By |2018-03-15T11:34:43+05:30March 15, 2018|Terms of Trade|Comments Off on Single Factorial Terms of Trade (With Criticisms) | Economics

Double Factorial Terms of Trade (With Criticisms) | International Economics

The concept of double factoral terms of trade, formulated by Jacob Viner takes into account the change in factor productivity both in the domestic export industries and export industries of the foreign countries. This concept can be expressed as: TD = TC . (ZX/ZM) Here TD is the double factoral terms of trade, TC is the commodity terms of trade, [...]

By |2018-03-15T11:34:43+05:30March 15, 2018|Terms of Trade|Comments Off on Double Factorial Terms of Trade (With Criticisms) | International Economics

Reasons for Secular Deterioration of Terms of Trade | Economics

The secular deterioration in the terms of trade of the developing countries has occurred on account of the following reasons: 1. Absence of Qualitative Improvement of Products 2. Distribution of Gains from Technical Progress 3. Immiserizing Growth 4. Low Income Elasticity of Demand 5. Impact of Import on the Import- Competing Industries 6. Large Surpluses of Farm Products and a [...]

By |2018-03-15T11:34:43+05:30March 15, 2018|Terms of Trade|Comments Off on Reasons for Secular Deterioration of Terms of Trade | Economics
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