Definition of terms of trade in English:

terms of trade

Syllabification: terms of trade

noun

Economics
  • The ratio of an index of a country’s export prices to an index of its import prices.
    More example sentences
    • A ratio comparing export prices to import prices, the terms of trade is related to current accounts and the balance of payments.
    • To be sure, there are substantial benefits to be derived in terms of trade, price transparency and economic efficiency from the embrace of a common currency union.
    • The sources of the liquidity squeeze include poorer terms of trade with customers and suppliers and a less accommodating approach by banks.

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Pronunciation: kərf
noun
a slit made by cutting with a saw