0 votes
in Business Studies Form 4 by
What are the terms of trade in international trade?

1 Answer

0 votes
  • This refers to the rate at which the country’s export exchanges with those from other country. That is:
    Terms of trade = 
    price index of export
    price index of import 
  • It determines the value of export in relations to import so that a country can know whether it’s trade with the other country is favourable or unfavourable
  • Favourable terms of trade will make the country spent little on import andgain a lot of foreign exchange from other countries
Welcome to EasyElimu Questions and Answers, where you can ask questions and receive answers from other members of the community.

5.9k questions

8.2k answers


590 users