The meaning of "terms of trade" is
A) the amount of exports sold by a country.
B) the tariffs in place between two trading countries.
C) the quantities of imports received in free trade.
D) the price of a country's exports divided by the price of its imports.
E) the price conditions bargained for in international markets.

Question

Quizplus · Accepted Answer

Terms of trade refers to the ratio of the price of a country's exports to the price of its imports. It is an economic indicator that reflects the value of a country's exports relative to its imports, and can have a significant impact on a country's economy. The terms of trade can improve or decline depending on global economic factors, changes in commodity prices, and other market forces.

The Meaning of "Terms of Trade" Is