The Terms of Trade (TOT)is Defined as
A)(index of Export $R^{*}$

The terms of trade (TOT) is defined as

A) (index of export prices) /(index of import prices) .
B) (home-country currency) /(foreign-country currency) .
C) $R^{*}$ ( $\frac{P^{*}}{P}$ )
D) $R^{*}$ ( $\frac{P}{P^{*}}$ )
E) having a competitive advantage over other nations.