1.

Terms of trade (TOT) refers to the relative price of exports in terms of imports and is
defined as the ratio of export prices to import prices. It can be interpreted as the amount
of import goods an economy can purchase per unit of export goods. An improvement of a
nation's terms of trade benefits that country in the sense that it can buy more imports for
any given level of exports.
2. Bhagwati-Prebish immiserizing growth:
If developing countries exporting raw materials have export biased growth while, at the
same time, richer countries replace these raw materials by cheaper synthetic products (a
decrease in demand), these developing countries could suffer from immiserizing
growth. Here we take into account supply as well as demand effects (higher supply +
lower demand).