Which of the following is not true of the terms of trade?

Question

Quizplus · Accepted Answer

The General Agreement on Tariffs and Trade (GATT) is a multilateral agreement to promote free trade among member countries. While GATT does regulate trade agreements and negotiate tariff reductions, it does not negotiate the terms of trade between countries. The terms of trade are determined by supply and demand factors as well as negotiations between trade partners, and they can often favor one partner more than the other. The terms of trade lie somewhere between the opportunity costs of the trading partners.

Which of the Following Is Not True of the Terms