Assume that Down Slope specializes in producing snow boards and Seven Seas specializes in producing scuba tanks. After trade, Down Slope exports 2,000 snow boards and imports 400 scuba tanks. The terms of trade

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Quizplus · Accepted Answer

The terms of trade are determined by the ratio of the quantity of goods exchanged. Here, for every 400 scuba tanks imported, 2,000 snowboards are exported, making the ratio 2000:400 or simplified to 5:1 snowboards to scuba tanks.

Assume That Down Slope Specializes in Producing Snow Boards and Seven