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24 Mar 2013 Given the complexity of our system just to execute a trade, is it any wonder that CNBC has been on a push with Mila Kunis and Rachael Fox to 

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The terms of trade measures the rate of exchange of one product for another when two countries trade. A-level economics analysis on the terms of trade - revision video David Ricardo's theory of comparative advantage explains that if countries specialise in the production of the good/service in which they have a comparative advantage, then all countries can move outside their PPF and gain from trade. The rate at which one commodity (say, export good) is exchanged for another commodity (say, import good) is called terms of trade. Or what import the export buys is called TOT. Of course, export (and, hence, import) varies with the change in TOT.

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