Terms of Trade - TOT


Terms of Trade - TOT
The value of a country's exports relative to that of its imports. It is calculated by dividing the value of exports by the value of imports, then multiplying the result by 100. If a country's terms of trade (TOT) is less than 100%, there is more capital going out (to buy imports) than there is coming in. A result greater than 100% means the country is accumulating capital (more money is coming in from exports).

Using the terms of trade to determine the health of a country's economy can draw the wrong conclusions. It is important to know why exports increase relative to imports, especially since the terms of trade are directly impacted by changes in export and import prices. Terms of trade measurement is often recorded in an index for economic monitoring.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Terms of Trade —   [təːmz əv treɪd, englisch], Maßzahl für die reale Austauschposition eines Landes im internationalen Handel, im Allgemeinen ausgedrückt durch das Verhältnis des Index der Ausfuhrpreise zum Index der Einfuhrpreise jeweils in der Währung des… …   Universal-Lexikon

  • Terms of Trade — [ treid] die (Plur.) <aus engl. terms of trade »Handelsbedingungen«> die Austauschrelation zwischen den Import u. Exportgütern eines Landes (Wirtsch.) …   Das große Fremdwörterbuch

  • terms of trade —       relationship between the prices at which a country sells its exports and the prices paid for its imports. If the prices of a country s exports rise relative to the prices of its imports, one says that its terms of trade have moved in a… …   Universalium

  • Terms of trade — The weighted average of a nation s export prices relative to its import prices. The New York Times Financial Glossary * * * terms of trade UK US noun [plural] ► ECONOMICS the value of a country s exports compared with the value of its imports:… …   Financial and business terms

  • terms of trade — The weighted average of a nation s export prices relative to its import prices. Bloomberg Financial Dictionary * * * terms of trade UK US noun [plural] ► ECONOMICS the value of a country s exports compared with the value of its imports: »The… …   Financial and business terms

  • terms of trade — the ratio between the prices of two countries participating in international trade * * * terms of trade plural noun Relation between export and import prices in national accounts • • • Main Entry: ↑term * * * terms of trade UK US noun [plural]… …   Useful english dictionary

  • terms of trade — A measure of the trading prospects of a country expressed as an index of export prices divided by an index of import prices. A country s terms of trade improve if this ratio rises, because it can purchase more imports for a particular volume of… …   Big dictionary of business and management

  • terms of trade — UK / US noun [plural] business a measurement of a country s position in international trade, which compares the prices of the goods it sells to other countries with the prices of the goods it buys from other countries …   English dictionary

  • Terms of Trade — Tauschbedingungen im internationalen Handel, gegeben durch die relativen Preise der ⇡ handelbaren Güter. Die T.o.T. werden im zweidimensionalen Fall meist als das Verhältnis zwischen dem Preis des exportierten und dem Preis des importierten Gutes …   Lexikon der Economics

  • terms of trade — prices of products exported from a country compared to the price of goods imported …   English contemporary dictionary

  • terms of trade — plural noun Economics the ratio of an index of a country s export prices to an index of its import prices …   English new terms dictionary


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