WAEC - Commerce (2005 - No. 50)

Terms of trade is the
rate at which the central bank discounts first class bills
rate at which a country's exports exchange for its imports
expected rate of returns on an investment
rate of payment for goods and services purchased

Explanation

Terms of trade measures the relative prices at which goods are exchanged between countries, indicating how much import a country can purchase for a given amount of exports.

Comments (0)

Advertisement