The terms of trade of a country is defined as
- \(\frac{\text{Index of import prices}}{\text{Index of export prices}}\) x 100
- \(\frac{\text{Index of exportable}}{\text{Index of importable}}\) x 100
- \(\frac{\text{Index of visible imports}}{\text{Index of visible exports}}\) x 100
-
\(\frac{\text{Index of export prices}}{\text{Index of import prices}}\) x 100
The correct answer is: D
Explanation
Terms of trade (TOT) refers to the relative price of exports in terms of imports and is defined as the ratio of export prices to import prices.