Factors Affecting Terms of Trade in International Economics

Terms of Trade (TOT) in international economics represent the ratio between a country's export prices and its import prices, influencing its trade balance. Various types of TOT include Net Barter, Gross Barter, Income, Single Factoral, Double Factoral, Real Costs, and Utility terms. Major factors impacting TOT include changes in reciprocal demand, factor endowments, technology, tastes, economic growth, and policy measures like tariffs and devaluation.

• International Economics
• Terms of Trade
• Factors
• Trade Balance
• Economic Growth

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1. Factors Affecting Terms of Trade B.A 6thSemester Paper: International Economics Subject: Economics Presented by Simanta Poddar Associate Professor & HOD Dept. Of Economics, Furkating College

2. Meaning Terms of trade (TOT) represent the ratio between a country's export prices and its import prices TOT is expressed as a ratio that reflects the number of units of exports that are needed to buy a single unit of imports

3. Types of Terms of Trade(TOT) Net Barter or commodity Terms of trade. Gross Barter Terms of trade. Income Terms of trade. Single Factoral Terms of trade. Double Factoral terms of trade. Real costs terms of trade. Utility terms of trade etc.

4. Major Factors Affecting the Terms of Trade Reciprocal Demand Changes in Factor Endowments Changes in Technology Changes in Tastes Economic Growth Tariff Devaluation