Home > Term: terms of trade
terms of trade
Allocation of inputs into two or more economies that take advantage of differences in comparative advantages and, through specialization, improve the production of the economies. Note that a change in the terms of trade should cause all domestic production to change (that is, reallocates all inputs), rather than just imports.
- Part of Speech: noun
- Industry/Domain: Labor
- Category: Labor statistics
- Company: U.S. DOL
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Creator
- Levi Taylor
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