A country's terms of trade are defined as the average price of a country's exports divided by the average price of its imports.

Question

Quizplus · Accepted Answer

Terms of trade measure the rate at which one country's goods exchange for those of another. It is calculated by dividing the price of the country's exports by the price of its imports and multiplying by 100. This ratio helps in understanding the relative trading position of a country in the global market.

A Country's Terms of Trade Are Defined as the Average