Economic Glossary | Terms of Trade | Bankers Algo
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Economic Glossary

    Terms of Trade

The quantity of one good that's given up to get another. Terms of trade is usually applied to foreign trade, although it's just as applicable to any sort of exchange. Terms of (foreign) trade are said to improve when one country gives up a relatively smaller quantity of their stuff to get a relatively larger quantity of another country's stuff. Terms of trade depend on the relative productivity of two countries and is reflected by exchange rates.


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Word of the day

Endeavour(v)

Meaning:

to exert oneself to do or affect something; make an effort; strive

Synonyms: aim, best shot, crash project, dry run, effort, enterprise, essay, exertion, fling, full blast

Antonyms: idleness, laziness

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