Question

Single factoral terms of trade takes into account changes in​

Answer 1

Answer:

The single factoral terms of trade imply a ratio of the export price index and import price index adjusted for changes in the productivity of factors used in the production of export goods.

Explanation:

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Answer 2

We need to answer the question which is state what factors affect 'single factorial trade'

• Jacob Viner tried to correct and improve the terms of exchange of the commodities
• Jacob Viner tried to introduce changes in factors which was used to produce goods for export
• This concept was developed by Jacob Viner and was called the "Trade terms of Single Factorial"
• This was calculated by multiplying the productivity index with the terms of trade of the commodity in the sector of domestic exports.
• The Terms of trade of Single Factorial  imply that there is a connection between the export price index and the import price index
• So the Trade terms take into account changes in the factors required for production