The ratio between a country's exports and her imports prices is the
Answer Details
The ratio between a country's exports and her imports prices is known as "terms of trade." Terms of trade is the value of a country's exports relative to the value of its imports. It reflects the prices of a country's exports compared to its imports. A country that has good terms of trade has its exports priced higher than its imports, which means that it can buy more imports for the same amount of exports. In contrast, a country that has poor terms of trade has its imports priced higher than its exports, which means that it has to give up more exports to buy the same amount of imports. Therefore, terms of trade is an important economic indicator that helps countries to assess the strength of their international trade.