Business Environment, 4th Edition by Pearson

206 | Chapter 8

growth of import demand of the advanced countries for most primary products

has lost the momentum of the earlier period and, currently, it lags behind the

growth in their domestic incomes and output. The volume of exports from the

underdeveloped countries expanded at a rate of 3.6% p.a. while the exports from

the developed countries rose at the rate of 6.2%. This export lag is accompanied by a

deterioration in their terms of trade. Thus, in view of the unfavourable trends in the

world trade of primary commodities, industrialisation is the only eective answer

to the problems of underdeveloped countries. They can no longer depend ...