Economics · International Trade Theories

Which of the following statements are correct regarding the Prebisch-Singer Thesis? A. It argues that the terms of trade for primary commodity exporters deteriorate over time relative to manufactured goods exporters. B. It suggests that developing countries export manufactured goods while developed countries export primary commodities. C. It states that primary exports generate insufficient foreign exchange to finance development imports. D. It explains the creation of an external vicious circle that hinders developing nations. Choose the correct option: