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, [...]
The concept of income terms of trade was developed by G.S. Dorrance and H. Staehle. This concept is an improvement upon the net barter terms of trade. It takes into account the indices of export and import prices and quantity index of exports. The income terms of trade are determined by the product of net barter terms of trade and [...]
In this article we will discuss about the net barter terms of trade with its criticisms. In the contemporary world, the concept of net barter terms of trade was introduced by F.W. Taussig. This concept was called as commodity terms of trade by Jacob Viner. It is defined as ratio of export prices to import prices. It can be expressed [...]