The terms of trade of a nation are defined as the ratio of the price of its exports to the price of its imports. Since in a two-nation world, the exports of a nation are the imports of its trade partner, the terms of trade of the latter are equal to the inverse, or reciprocal, of the terms of trade [...]
The following article will guide you about how to calculate terms of trade. The rate at which one country's products exchange for those of another is known as the term of trade. If the terms of trade move in a nation's favour, it gets a larger quantity of imports for a given quantity of its exports. This happens because import [...]
In this article we will discuss about the changes in the terms of trade between agriculture and industry during the course of economic development. The growth process is generally initiated in the agricultural sector. In the initial stages, labour and capital are transferred from the agricultural sector to the industrial sector. Under these circumstances, most of the economists believe that [...]