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.
Definition of terms of trade in:
- The British & World English dictionary