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Terms of Trade: Concepts, Determination and Effect of Tariff on Term of Trade

Terms of trade

❶Compensation Principle With Diagram.

12 June 2015

China - Trade
What are 'Terms of Trade - TOT'?
BREAKING DOWN 'Terms of Trade - TOT'

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Terms of trade represent the ratio between a country's export prices and its import prices and are used as a measure of a nation's economic health.

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Definition of terms of trade from the Collins English Dictionary The to infinitive and the -ing form The to infinitive and the -ing form(the present participle) can .

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INCOTERMS stand for international commercial terms. The Incoterms rules created by the International Chamber of Commerce are a set of uniform rules codifying the interpretation of delivery trade terms defining the rights and obligations of the exporter and importer in an international transaction. Examples include CIF, FOB, FAS, CFR, etc. Terms of Trade Index (ToT) = x Average export price index / Average import price index. If a country can buy more imports with a given quantity of exports, its terms of trade have improved. For example, during the commodity price boom, many resource-exporting developing countries experienced increases in their terms of trade.

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en There are very defined limits to how much the world can sustain in terms of production, in terms of trade, in terms of transport and distribution. In economics, terms of trade (TOT) refer to the relationship between how much money a country pays for its imports and how much it brings in from exports. When the price of a country's exports increases over the price of its imports, economists say that the terms of trade has moved in a positive direction.