Terms of Trade (TOT) Definition - Investopedia
https://www.investopedia.com/terms/t/terms-of-trade.asp
Terms of trade (TOT) represent the ratio between a country's export prices and its importprices. TOT indexes are defined as the value of a country's total exports minus total imports. The ratio is calculated by dividing the price of the exports by the price of the imports and multiplying the result by 100. When more capital is leaving … The TOT is used as an indicator of a country’s economic health, but it can lead analysts to draw the wrong conclusions. Changes in import prices and export prices impact the TOT, and it's important to understand what caused the price to increase or decrease. TOT measurements ar…
Terms of trade (TOT) represent the ratio between a country's export prices and its importprices. TOT indexes are defined as the value of a country's total exports minus total imports. The ratio is calculated by dividing the price of the exports by the price of the imports and multiplying the result by 100. When more capital is leaving …
The TOT is used as an indicator of a country’s economic health, but it can lead analysts to draw the wrong conclusions. Changes in import prices and export prices impact the TOT, and it's important to understand what caused the price to increase or decrease. TOT measurements ar…
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