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Where T stands for net barter terms of trade, P stands for price index, x for exports, and m for imports. When, however, we want to compare changes in terms of trade between two periods, the following ratio is applied: Energy Policy and Planning Office.
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Net Barter Terms of Trade. The ratio between the prices of exports and imports is called the net barter terms of trade or as Viner puts it, "the commodity terms of trade." To express this symbolically: Where. T stands for net barter terms of trade, P stands for price index, x for exports, and. m for imports.
The commodity or net barter terms of trade is the ratio between the price of a country’s export goods and import goods. Symbolically, it can be expressed as: Tc = Px/Pm. Where Tc stands for the commodity terms of trade, P for .
If the net barter terms of trade are to be applied to more than one export and import commodities and the changes in terms of trade over a given period are to be computed, the index numbers of export and import prices rather than prices of individual commodities are taken into account. United Nations Conference on Trade and Development, Handbook of Statistics and data files, and International Monetary Fund, International Financial Statistics.
Net barter terms of trade DEFINITION: Net barter terms of trade are the ratio of the export price index to the corresponding import price index measured relative to the base year = What is Net Barter Terms of Trade Index? Definition of Net Barter Terms of Trade Index: Defined as the ratio of a country’s exports price index to its imports price index.