Terms of trade refer to:

Question

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Terms of trade refer to the rate at which goods are exchanged for one another, typically between two countries. It refers to the relative prices of a country's exports compared to its imports. A country benefits from a favorable terms of trade as it means it can import more goods for a lower cost than it can export its own goods. Conversely, an unfavorable terms of trade means a country has to export more goods to afford the same amount of imports.

Terms of Trade Refer To