TERMS OF TRADE

Terms of trade is expressed as a

• ratio of foreign exchange receipts and payments

• ratio of price index of exports and imports

• ratio of foreign direct investment and portfolio investment

Terms of trade are favourable, if the current index in comparison to the base year is

• less

• equal

• more

• none of the above

Gross barter terms of trade takes into account

• trade items and unilateral payments

• all the items

• only services

• none of the above

Income terms of trade tells increased capacity to

• export

• investment

• savings

• import

Single factoral terms of trade takes into account changes in

• export and import prices

• changes in efficiency of factors producing export goods

• changes in demand for imports

• none of the above

The developing countries, it is argued, usually

• enjoy favourable terms of trade

• suffer from adverse terms of trade

• have better income terms of trade

• enjoy having imports over exports

The formula for Gross Barter terms of trade is

• Qm1/Qx1 X 100

• Tc X Qx

• Px/Pm

• Px1/Pm1 X 100

The formula for Net Barter terms of trade is

• Qm1/Qx1 X 100

• Tc X Qx

• Px/Pm

• Px1/Pm1 X 100

The formula for Income terms of trade is

• Qm1/Qx1 X 100

• Tc X Qx

• Px/Pm

• Px1/Pm1 X 100

The formula for terms of trade is

• Qm1/Qx1 X 100

• Tc X Qx

• Px/Pm

• Px1/Pm1 X 100