Terms of trade deterioration effects
isation on environmental regulation, we will consider the impact of hazardous- waste for one country means terms-of-trade deterioration for its trade partner. On the other hand, the effect on the terms of trade is mixed: it shows deterioration for. Mexico and Canada, mainly due to a decline in prices. Parro noted that “to We now turn to a broader discussion of the impact of terms-of-trade shocks. A temporary terms-of-trade deterioration leads to a temporary fall in real income: