Question

Explain the various concepts of terms of trade. Critically examine the behavior of terms of trade as explained by prebisch​

Answer 1

Answer:

The essence of Prebisch-Singer thesis is that the peripheral or LDC's had to export large amounts of their primary products in order to import manufactured goods from the industrially advanced countries

Explanation:

Consequently, the terms of trade have remained unfavourable to the developing countries.

Answer 2

Answer:

one of the most famous and most controversial component of Raul prebisch thinking was his convention that there had been a centuries long deterioration in the terms of trade of commodities and food with a vis-à- vis industrialised goods. since the developing countries specialise in commodities and food, the down trend in the value of these products would lead to a worsening of their terms of trade.