WAEC - Economics (2015 - No. 43)
A country has favourable terms of trade when the prices of her
exports rises relative to the price of her imports
exports falls relative to the price of her imports
imports rise faster than the prices of imports
imports and exports move in the same direction
Paaiškinimas
If the prices of a country's exports rise relative to the prices of its imports, one says that its terms of trade have moved in a favourable direction, because, in effect, it now receives more imports for each unit of goods exported.