Question 1 Report
The terms of trade of a country is defined as
Index of import prices/Index of export prices X 100
Index of exportable/Index of importable X 100
Index of visible imports/Index of visible exports X 100
Index of export prices/Index of import prices X 100
Answer Details
Terms of trade (TOT) refers to the relative price of exports in terms of imports and is defined as the ratio of export prices to import prices.