Understanding the Terms of Trade of a Country: Factors and Implications

The video tutorial explains the concept of terms of trade, its importance in international trade, and how it reflects a country's economic competitiveness. It covers the theory of comparative advantage, factors influencing terms of trade, and how changes in terms of trade affect living standards. The tutorial also provides guidance on calculating terms of trade and discusses its application in economic analysis.

What does it indicate if a country's terms of trade are deteriorating?

Why is it important to understand the terms of trade in the context of international economics?

Discuss the relationship between terms of trade and economic performance.

In what ways can changes in export and import prices affect a country's terms of trade?