When a nation's terms of trade deteriorates to the point where the nation is worse off after growth than before,the nation has experienced:
A)immiserizing growth
B)post trade stagnation
C)unbalanced growth
D)impeded growth

Question

Quizplus · Accepted Answer

Immiserizing growth occurs when a country's terms of trade worsen so much that even with an increase in its export volume, the country becomes worse off than before due to a relative decrease in the prices it receives for its exports. This can lead to a decline in overall welfare and standards of living for the country.

When a Nation's Terms of Trade Deteriorates to the Point