国际经济学件.pptVIP

Sector . Thus , S measures the amount of imports the nation gets per unit of domestic factors of production embodied in its exports . A nation’s double factor terms of trade are given by D = (px/ pm )(Zx/Zm)100 . Where Zm is an import productivity index . Thus , D measures how many units of domestic factors embodied in the nation’s exports 第256页/共298页 are exchanged for per unit of foreign factors embodied in its imports . of the four terms of trade defined , N, I , and S are the most important . D does not have much significance for developing nations and is very seldom . The most significant terms of trade for developing nations are I and S . 第257页/共298页 4. Reasons for deterioration in the commodity terms of trade Some economists considered that the commodity terms of trade of developing nations tend to deteriorate over time . The reason is that workers in developed nations share most or all of the productivity increase taking place in developed nations in the form of higher wages and income . While most or all of the productivity increases taking place in 第258页/共298页 developing nations are reflected in lower commodity price and lower wages . Because labor is relatively scarce in developed nations and labor unions are strong . While in developing nations , surplus labor , large unemployment exist , weak or nonexistent labor unions are common phenomena . Another reason for deterioration in good 第259页/共298页 terms of trade is that developing nations’ demand for the manufactured goods from developed nations grow much faster than developed nations’ demand for the agricultural and raw material exports of developing nations . This is due to the much higher income elasticity of demand for manufactured goods than for agriculture commodities and raw materials. 第260页/共298页 5. Economic development strategies Primary-export-led (export oriented ) development strategy: It refers to government programs or policies designed to exploit natural comparative advantage by incr