Business, 12.08.2020 09:01 halltristan657

If, over a given period, the index of export prices rises by 10% and the index of import prices rises by 5%, the terms of trade are: 110 x 100 / 105 = 104.8 This means that the terms of trade have improved by 4.8%. When the terms of trade rise above 100 they are said to be improving and when they fall below 100 they are said to be worsening. If a country's terms of trade improve, it means that for every unit of exports sold it can buy less units of imported goods. A) True
B) False

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If, over a given period, the index of export prices rises by 10% and the index of import prices rise...