Question 1 Report
Let P x represent the price of exports and Pm the price of imports. Then the terms of trade (TOT) are said to be favourable if
$$P_{x}/P_{m}$$
$$P_{x}/P_{m}=1$$
$$P_{x}/P_{m}>1$$
$$P_{x}/P_{m}+1$$
Answer Details
"$$P_{x}/P_{m} > 1$$"