terms of trade

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terms of trade

the changing overall ratio of the prices (or VALUES) a country must pay for the goods and services it imports and the prices (or values) it is able to obtain for the goods and services it exports. This is usually measured by a quotient obtained by dividing an index number of the prices of goods and services sold by an index number of those obtained. In recent decades, a deterioration in the terms of trade between developed and less developed countries has posed a persistent problem for the latter, brought about by, e.g.:
  1. the substitution of agricultural products by synthetic, industrially produced replacements; and
  2. the ‘income elasticity’ (see ELASTICITY OF SUPPLY AND DEMAND) for foodstuffs (i.e. people in developed societies can eat only so much food). Efforts to overcome the problem of adverse terms of trade for many of the goods produced by poorer countries include the diversification of their pattern of production for international markets, but this, if it can be achieved at all, is a long-term process in which some developing nations (e.g. those richer in natural resources, and achieving relative political stability) are more successful than others. See also INTERNATIONAL TRADE, UNEQUAL EXCHANGE.
Collins Dictionary of Sociology, 3rd ed. © HarperCollins Publishers 2000
References in periodicals archive ?
But, at the end of the day, our trade terms with the UK remains the same.
The online footnote reads: " C ORRECTION: This article previously said that of all the options suggested by pollsters - staying in the EU, coming out on Theresa May's terms, or coming on World Trade terms - a 'no-deal' Brexit was by some margin the outcome most preferred by the British public.
We are committed to working with the government of Pakistan to ensure a smooth transition in trade arrangements as the UK leaves the EU and, once we have left, aim to enhance those trade arrangements further to encourage more of Pakistan's exporters take advantage of the preferential trade terms to UK markets."
Women traders and industrialists should be encouraged to come forward and establish bilateral trade terms with different international clients and countries.
Shipowners and other stakeholders in the maritime sector are on the verge of getting the desired change in trade terms from Free On Board (FOB) to Cost Insurance and Freight (CIF) which would enable them to begin to lift Nigeria crude and ultimately boost indigenous capacity.
According to the ministry's annual report, the value of exports under the Generalized System of Preferences - which gives Cambodia favourable trade terms with developed countries - totalled $9.55 billion, a 19.22 percent increase on last year.
Any broader impact on corporate sectors remains dependent on post-Brexit trade terms and the amount of time companies have to prepare for change.
Through this new capability, shippers and consignee's can quote and book shipments for all commonly used pre-paid and collect trade terms from a computer or any mobile device.
Among his topics are the regulatory and institutional framework, document collection and documentary credit: caselets under URC 522 and UCP 600, trade terms or international commercial terms and their application, export trade and export credit or pre-shipment and post-shipment credit, and bank guarantees in international trade.
According to local media reports, representatives from the U.S, Canada and Mexico gathered at a Mexico City hotel on Friday to hash out improved trade terms agreeable to all.
These included frictionless movement for greyhounds between Ireland and the UK which can be aided by better traceability between the IGB and the Greyhound Board of Great Britain; minimised travel time to ensure greyhound welfare and no disadvantage in trade terms for feed producers in the Republic of Ireland.
China's state oil refiners have been granted a combined 1.315 million tonnes of quotas to export refined fuel under so-called general trade terms, three sources familiar with the matter said.