The relative price of exports and imports is better known as ______.

Question

Quizplus · Accepted Answer

The terms of trade refer to the ratio of the price index of exports to the price index of imports. It reflects the relative price of a country's exports and imports and is a measure of the purchasing power of a country's exports. A higher terms of trade indicate that a country can buy more imports per unit of exports, while a lower terms of trade indicate the opposite.

The Relative Price of Exports and Imports Is Better Known