The concept of 'Terms of Trade' deterioration for developing countries was emphasised by:
A. Adam Smith
B. Raul Prebisch and Hans Singer
C. Heckscher and Ohlin
D. David Ricardo
Answer: Option B
Solution (By JKSSB Mock Tests)
The Prebisch-Singer hypothesis argues that the terms of trade of primary commodity exporters (mostly developing countries) tend to deteriorate over time relative to manufactured goods.
No comments yet. Be the first to start the discussion!