// definition
Terms of trade
Export prices relative to import prices
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Short definition
An economy’s export price index divided by its import price index. An increase means that the same exports can buy more imports. This price indicator is distinct from the trade balance, which also depends on the quantities traded.
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Formula
terms-of-trade index = export price index / import price index × 100Related analyses
Primary sources
- OECD: terms of trade definitionRelative export and import prices and purchasing power abroad.