JAMB - Economics (2018 - No. 53)
The formula (index of export prices)/(index of import prices) x 100 is used to measure the____________
Volume of trade between countries
direction of international trade
commodity terms of trade
volume of imports
Forklaring
Term of trade refer to the rate at which a country’s exports exchange for its import. It is expressed as a relation between the prices a country receives for its export and the prices it pay for import. Term of trade is usually measured by this mathematical formula: