Terms of trade is used to describe

Terms of trade refers to the rate at which a country's exports exchange for imports from another country. It is a measure of the relative value of a country's exports in comparison to its imports. If a country's terms of trade improve, it means that it can buy more imports with the same amount of exports. On the other hand, if a country's terms of trade deteriorate, it means that it has to export more to buy the same amount of imports. Therefore, terms of trade are an important economic indicator that affects a country's balance of payments, international trade, and economic growth.