TERMS OF TRADE
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Terms of trade   refers to the relationship between export prices and import prices. Or It refers to the rate at which the goods of one country are exchanged for the goods of another country. Or it refers to the purchasing power of the country‘s exports in terms of its outputs.

Types of terms of trade

Barter (commodity) terms of trade: This refers to the relationship between export prices and import prices  .

Income (monetary) terms of trade: This refers to the ratio of the value of exports to the price index of imports



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International trade theories
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Meaning and types of international trade.

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Economics