Barter (Commodity) T.O.T.

Barter (Commodity) T.O.T. This refers to the ratio of export prices to the import prices.   OR. It refers to the ratio of price index of exports to the price index of imports.

• If the barter T.O.T is greater than 1; the country is said to experience favorable terms of trade
• If the barter T.O.T is less than 1; the country is said to experience unfavorable terms of trade

Barter T.O.T can also be expressed as percentage using the following formula

Barter T.O.T are favorable if it  is greater than 100% and unfavorable if it  is less than 100%