answersLogoWhite

0

Terms of trade = Price of Exports / Price of Imports

The prices of exports and imports are usually calculated with respect to a specified base year. From that it is possible to calculate changes in the mix and the value of the trade flows to arrive at prices for the period in question.

User Avatar

Wiki User

13y ago

Still curious? Ask our experts.

Chat with our AI personalities

ReneRene
Change my mind. I dare you.
Chat with Rene
BeauBeau
You're doing better than you think!
Chat with Beau
DevinDevin
I've poured enough drinks to know that people don't always want advice—they just want to talk.
Chat with Devin

Add your answer:

Earn +20 pts
Q: What is the mathematical formula for calculating terms of trade?
Write your answer...
Submit
Still have questions?
magnify glass
imp