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terms of trade

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terms of trade

In international trade, the ratio of export prices to import prices. An improvement in the terms of trade (an increase in the value of the ratio) should mean that the country is better off, having to provide fewer exports for the same number of imports as before. Devaluation of the currency leads to a deterioration of the terms of trade.
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He claimed: "We are talking ourselves into a state of despair about what will happen in terms of trade and the special relationship.
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Fairtrade ensures better prices and working conditions and fair terms of trade for farmers and workers in the developing world.
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