| Being a most controversial index of evaluating the quality of foreign trade increasing and the benefit of participating in the globalization, terms of trade has been widely focused on after being issued.Disputes on terms of trade can be easily fallen into two extremely different points: one is liable to neglecting the responsibility of Developed Countries being dominated in the globalization, contradicting the deteriorating trend of terms of trade, or the effect that the deterioration would ameliorate the welfare of Developing Countries and be an obstacle of economic development, therefore denying the inequality of World Economics; the other one is liable to neglecting the responsibility of Developing Countries, pessimistically emphasizing the developing dilemma of Developing Countries, disclaiming the possibility of development, even completely rejecting the open economy. The former renounced the horizontal extent of development which means most of the human being must be benefited according to the development; the latter is unaware of the vertical depth of development which means development is a complicated transformation but a simple circulation.Obviously, when it comes to terms of trade, there are different opinions and different development theories. On the condition of that, during this paper, the author tries to clarify the relationship between terms of trade and development from the angles of both theory and practice. The deteriorating trend of terms of trade substantially reflects at least two issues: firstly, from the outside environment, Developed Countries are dominated in the globalization, the deteriorating trend of terms of trade substantially reflects the resources emolument diversion from the Developing Countries to Developed Countries; secondly, as far as the inner structures concerned, the low level of the industrial structure is the critical barrier. Along with the terms of trade deteriorating, globalization play a negative role on adjusting... |
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