Terms Of Trade Flashcards
1
Q
Terms of trade equation
A
(Weighted average of export prices) times( weighted average of import prices) times 100
2
Q
Terms of trade
A
Indicates the quantity of exports that must be sold to purchase a given level of imports
3
Q
Factors influencing the terms of trade(short run)
A
Changes in demand/supply of exports/ imports
Inflation
Exchange rate movements
4
Q
Factors influencing the terms of trade (long run)
A
Income
Productivity
Technology
