If prices of a nation's exported products rise in comparison to prices paid
For imports, that nation experiences a:
A)rise in its international terms of trade.
B)decline in its international terms of trade.
C)reduction in its imports.
D)reduction in its exports.

Question

Quizplus · Accepted Answer

An increase in the prices of a nation's exported products relative to the prices of imports results in a rise in its international terms of trade. This means that the nation can purchase more imports for the same amount of exports, increasing its purchasing power and leading to an improvement in its overall economic situation.

If Prices of a Nation's Exported Products Rise in Comparison