9708 · 11.5
Relationship between countries at different levels of development
**Relationships between economies** (11.5) requires **balanced evaluation** of aid vs trade liberalisation — avoid one-sided arguments.
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
- 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.