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4.1.4 Terms of trade
c)Impact of changes in a countrys terms of trade
export and import revenues
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Cards (5)
Why is it important to look at the cause of change in economic conditions?
To determine if the change is
beneficial
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What happens if an improvement occurs due to increased demand for exports?
It will be
beneficial
for the country
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What is the effect of deterioration caused by improved international competitiveness?
It will also be beneficial for the
country
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What is more important than price alone in trade?
Export
and import
revenues
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What must happen for an improvement to be considered beneficial?
Export revenues
must increase
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