Terms of trade refers to:

Question

Quizplus · Accepted Answer

Terms of trade refer to the rate at which goods are exchanged in international trade. It represents the ratio at which a country can trade its exports for imports from another country. If a country's terms of trade improve, it means it can buy more imports for the same amount of exports, which is beneficial for its economy. On the other hand, if the terms of trade deteriorate, it means the country needs to export more to afford the same level of imports, which can be challenging.

Terms of Trade Refers To