For a country,what is an ideal situation for terms of trade?
A) exporting low-valued commodities and importing high-valued ones
B) exporting low-valued commodities and importing low-valued ones
C) exporting high-valued commodities and importing high-valued ones
D) exporting high-valued commodities and importing low-valued ones
E) no exports and importing several commodities

Question

Quizplus · Accepted Answer

Exporting high-valued commodities and importing low-valued ones is the ideal situation for terms of trade. This means that the country is earning more revenue from its exports than it is spending on its imports. This allows the country to strengthen its economy and improve its standard of living.

For a Country,what Is an Ideal Situation for Terms of Trade