![How to calculate terms of trade How to calculate terms of trade](https://digitalteachers.co.ug/wp-content/uploads/2022/09/Bbosa-Science.png)
How to calculate terms of trade
Terms of trade is the ratio of export price index to import price index.
A ratio greater than 1 indicates favorable trade while a ratio less than one indicates unfavorable trade.
CATEGORIES Economics
TAGS Dr. Bbosa Science