Economics A-Level
Terms of Trade
What Terms of Trade means in Economics A-Level, as defined for Pearson Edexcel.
Definition of Terms of Trade
An index representing the ratio of a country's export prices to its import prices; an increase signifies an improvement in purchasing power.
Topics that use Terms of Trade
- International economics (Pearson Edexcel A-Level)
Related terms
Using Terms of Trade in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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