Terms of Trade - part 1

A nation's terms of trade determine the value of its exports relative to the price of its imports. Using price indexes, a nation can calculate its terms of trade and analyze changes in in it to determine whether imported goods are becoming relatively cheaper or more expensive compared to its exports.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! econclassroom.c...

[@theosungminjeong6251]

Hey Jason, I enjoyed this video and I know how to calculate terms of trade. However, I am convinced your definition of Terms of Trade is mixed up. I would have thought that since the imports lies on the denominator of the formula, the formula is measuring amount of exports that can be bought per import unit than per export unit. Please consider. Thank you.

[@nothandotshuma6459]

I love your videos.My understanding of this subject grows deeper the more i listen to you.Thank you Sir.

[@Nightengale0000]

You know, you are the best economic teacher online right? I love your videos you thought me alot. I am from Jamaica.

[@KanyagoMorisha]

Hlo

[@gulnaarturiyan7499]

hi jason thanks for your great videos the only problem being they are short and small please add more videos on more topics
please reply.

[@rajatajayakumar7598]

Hi Jason, thanks for your great videos with beautiful explanation. I'm a student in IBDP Y2 and you've covered the 3 units of our syllabus. I was wondering if it was possible to for you to cover Development Economics (Unit 4) also, it'll be very helpful for me and my classmates since your channel is amazing for reference or revision purposes.

[@JasonWelker]

I've not made videos on Development yet... it's a tricky subject because there aren't many graphs for which this format of video is best suited. However, I have written a brand new revision guide / course companion that includes a newly written chapter on Development economics. Check that out if you want a spiffy new resource for studying and reviewing economic development! econclassroom.com/?product=class-notes-ib-economics-sl-and-hl-sections-1-3

[@mussasony7728]

Why you do not less than zero when you get answer

[@oneinabillion654]

Hi, is the %change in price the %change in price index relative to a base year or relative to the year before???

[@JasonWelker]

The year before.

[@ghulamabass8009]

Well sir
Sir tell about reciprocal deman and supply
Offer curve

[@Phazratali786]

WELL SIR

[@batulfatimah6279]

well explained

[@megasxl3]

gg