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Terms of Trade:These are various terms of trade viz. The commodity or net barter terms of trade, income Terms of trade, single factorial terms of trade and double factorial terms of trade. We discuss here the commodity terms of trade.The Commodity or Net Barter Terms of Trade is the rate at which a country's exports are exchanged for its imports for a given period of time. In other words, it is the ratio of the price index of the nation's exports (Px) to the price index of imports (Pm) multiplied by 100.
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