A single factoral terms of trade shows that a country's factoral terms of trade improve as productivity
A)Remains constant in its export industries
B)Improves in its export industries
C)Deteriorates in its export industries
D)Increases in its import industries

Question

Quizplus · Accepted Answer

A single factoral terms of trade improvement occurs when there is an increase in productivity in a country's export industries. This leads to the country being able to export more for the same amount of imports, effectively improving its terms of trade.

A Single Factoral Terms of Trade Shows That a Country's