The rate at which a country's export exchange for its imports is
COMMERCE
WAEC 2023
The rate at which a country's export exchange for its imports is
- A. terms of payment
- B. terms of trade
- C. balance of payment
- D. balance of trade
Correct Answer: B. terms of trade
Explanation
The rate at which a country's export exchange for its imports is known as the 'terms of trade'. The terms of trade are the ratio of an index of a country's export prices to an index of its import prices. It shows the quantity of import goods an economy can purchase per unit of export goods.
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