Terms of trade refers to ________.
A)the quantity of imports that a given quantity of a country's exports can buy
B)specific requirements placed on imports and exports at the port of entry or exit
C)requirements agreed upon by two countries to regulate bilateral trade
D)an account statement showing a country's annual imports and exports

Question

Quizplus · Accepted Answer

Terms of trade refers to the relationship between the prices of a country's exports and imports. It is calculated as the ratio of the price index of a country's exports to the price index of its imports. Therefore, option A is the most accurate description of terms of trade.

Terms of Trade Refers to ________