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Economics 4.1.4
Economics- Edexcel 4.1.4
Term | Definition |
---|---|
terms of trade | measure the relative prices of a country’s exports compared to the cost of imported goods and services |
terms of trade index formula | (price index for exports) / (price index for imports) |
ToT | terms of trade |
measures of a country’s trade competitiveness | terms of trade or relative unit labour cost |
improvement in the terms of trade | export prices are rising relative to import |
factors influencing the terms of trade | global prices for raw materials and components/exchange rate/import tariffs and other trade barriers |