Relationship between countries at different levels of development

Need to know

What you need to know

• Developing countries often exhibit a high export concentration in primary products.
• Developed countries dominate global exports of high-value manufactured goods and services.
• The Prebisch-Singer hypothesis posits a long-run decline in the terms of trade for primary product exporters.
• Price volatility of commodities creates export earnings instability for developing economies.

Explanation

Relationship between countries at different levels of development

1. Developing countries often exhibit a high export concentration in primary products.
2. Developed countries dominate global exports of high-value manufactured goods and services.
3. The Prebisch-Singer hypothesis posits a long-run decline in the terms of trade for primary product exporters.
4. Price volatility of commodities creates export earnings instability for developing economies.