If the prices of a country's exports decrease and the prices of its imports increase, then the terms of trade will move in its favour.

Name: If the prices of a country's exports decrease and the prices of its imports increase, then the terms of trade will move in its favour.
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Question

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The terms of trade will move against the country because it will receive less for its exports while paying more for its imports, reducing its purchasing power.

If the Prices of a Country's Exports Decrease and the Prices