The word "declining" when used as part of the term "declining terms of trade" implies that the prices of commodity exports fall over time in comparison to the prices of manufactured imports.

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"Declining terms of trade" means that the amount of imports that can be purchased through the sale of a fixed amount of exports is decreasing, often because the prices of a country's exports (frequently commodities) are falling relative to the prices of its imports (often manufactured goods).

The Word "Declining" When Used as Part of the Term