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Economics
Terms of Trade
How much a country gets in imports for each thing it exports — basically the buying power of its exports.
Improving terms of trade makes a country richer without working harder. Worsening terms of trade (like for countries that only export cheap crops) makes them poorer over time.It's like how many video games you can trade for one of your old bikes — if the price of bikes goes up, your terms of trade get better.
Real world: When oil prices rise, oil-exporting countries like Canada get better terms of trade because one barrel of oil buys more foreign cars or machines.
💡 Terms of trade is the hidden scoreboard of global trade — countries that make things the world really wants usually win big.