terms of trade

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Related to Trade Terms: Incoterms

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.
References in periodicals archive ?
Dakuku Peterside who presented a paper titled, The Imperatives of Changing Nigeria's Crude Oil Affreightment Trade Terms From FOB to CIF pointed out that the Changing landscape of Nigeria's maritime sector viz-a-viz its security architecture, capacity, and other determinants has necessitated the Change now than ever before.
335 million tonnes of quotas allotted to the refiners under a separate, so-called processing trade category, after Beijing agreed to grant tax incentives to exports under general trade terms.
Once the trade terms are finalized, the next step is that the supplier gives the Commercial Invoice to the buyer via the PMS.
TiSA promotes free trade terms in some service sectors, Bhala noted, that are favorable to Washington and other "like minded" partners in the US-led "coalition of the willing".
Deposits and Guarantees required: Technical trade terms and conditions.
1) trade terms and customs tariffs will change upon the country's Customs Union accession
If we were to leave the EU it would be much tougher for companies based here to compete with continental or global rivals operating under more favourable trade terms.
This new joint venture has the ability to handle procurement, logistics, and structuring appropriate trade terms with the foreign buyer.
The figures also show that the European Union which gives Cambodia preferable trade terms is the second largest destination of Cambodian garments after USA.
deterioration of trade terms in 2013 amid the government's forecasts of positive changes or at least no changes.
EU leaders offered Egypt more than a billion euros in aid and better trade terms as President Muhammad Mursi flew in for his first visit to Europe pledging to support democratic values and freedoms.

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