What Are the Terms of Trade?
What Are the Terms of Trade?
The terms of trade measure the average price of a country's exports relative to the average price of its imports. They are expressed as an index, so they compare prices rather than the physical volume of goods traded.
Step-by-step lessons on CIE Intl A Level Economics 6.1.3 exports, imports and the terms of trade. Each one builds up to exam-style questions.