Question

what will be the likely effect of a technical progress which is biased towards country's import competing goods sector on its terms of trade.​

Answer 1

Explanation:

As the price of export good Y falls relative to that of import-competing good X, there will be deterioration in the terms of trade for this country. On the opposite, if technical progress takes place in the import-competing industry, there will be an improvement in the terms of trade of the country.