Growth in Manufactured Goods The quantity of imports that a given quantity of a coun exports can buy-say, how many bananas Country A must sell to Country B to purchase one refrigerator from Country B-is referred to as terms of trade. Historically, the prices of raw materials and agricultural commodities have not risen as fast as those of finished prod ucts, although they have risen faster during short periods. Over time, therefore, it takes more low-priced primary products to buy the same amount of high-priced manufactured goods In addition, the quantity of primary products demanded does not rise as rapidly as manu factured products and services, due partly to people spending a lower percentage of income on food as their incomes rise and partly to raw-material-saving technologies. Further because commodities are hard to differentiate, producers must compete on price, whereas the prices of manufactured products can stay high because competition is based more on differentiation Import Substitution and Export-Led Development Traditionally, developing countries promoted industrialization by restricting imports in order to boost local production and con sumption of products they would othen wise import However if the protected