Terms of trade

From Citizendium, the Citizens' Compendium
Jump to: navigation, search
This article is a stub and thus not approved.
Main Article
Related Articles  [?]
Bibliography  [?]
External Links  [?]
Citable Version  [?]
This editable Main Article is under development and not meant to be cited; by editing it you can help to improve it towards a future approved, citable version. These unapproved articles are subject to a disclaimer.

Terms of trade is a name for the ratio of the index of a country's export prices to the index of its import prices. A country's terms of trade are said to improve if its export prices rise faster (or fall more slowly) than its import prices.

(See also International Economics, Balance of payments)