Unequal terms of trade refers to

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Unequal terms of trade refer to the situation where the ratio of export prices to import prices is unfavorable, meaning that a country has to export more goods to import the same quantity of goods. This can result in a country being unable to afford necessary imports or facing balance of payment difficulties. Currency exchange rates and labor/capital investments can affect the terms of trade, but they are not the definition of unequal terms of trade.

Unequal Terms of Trade Refers to