What’s on the Terms of Trade poster
The rule, 3 worked examples, and the mistake everyone makes.
- Terms of trade is the index of export prices divided by the index of import prices.
- ToT = (Px / Pm) × 100
- Export prices rise = Improvement
- Oil importer, oil price rises = Deterioration
- Commodity exporters = Highly volatile
- Common mistake: Reading an improvement as always good → It depends on the cause
The Prebisch-Singer hypothesis argued primary exporters face a long-run decline in terms of trade. The evidence is mixed.
Questions about the Terms of Trade poster
- What’s on the Terms of Trade poster?
- The rule, 3 worked examples, and the mistake everyone makes. Terms of trade is the index of export prices divided by the index of import prices.; ToT = (Px / Pm) × 100; Export prices rise = Improvement; Oil importer, oil price rises = Deterioration; Commodity exporters = Highly volatile; Common mistake: Reading an improvement as always good → It depends on the cause. The Prebisch-Singer hypothesis argued primary exporters face a long-run decline in terms of trade. The evidence is mixed.
- Who is the Terms of Trade poster for?
- Terms of Trade belongs to the Economics section rather than to a school year, because business is not something one grade owns. Anyone learning international economics can pin it up — a beginner, a student mid-course, or someone revising years later.
- When should you use the Terms of Trade poster?
- It measures how many imports a unit of exports buys. A fall means working harder for the same goods. A wall chart earns its place by being glanceable from where the work is happening, so Terms of Trade belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
- What other posters go with Terms of Trade?
- Balance of Payments, Commodity Economics and Comparative Advantage sit alongside Terms of Trade in the Economics section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Balance of PaymentsCommodity EconomicsComparative Advantage
- Is the Terms of Trade poster free to download and print?
- Yes. Terms of Trade downloads as a free PDF with no account, no email and no watermark, like everything else in the Economics section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
- What size does the Terms of Trade poster print at?
- Terms of Trade is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of Terms of Trade loses nothing.Printing guide
Related posters
Charts that sit alongside Terms of Trade on the same wall.
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