NET BARTER TERMS OF TRADE
June 2019, Paper-II
Question
The commodity or net barter terms of trade is represented by the formula
a) ππ’πππ‘ππ¦ ππ πΈπ₯ππππ‘π /ππ’πππ‘ππ¦ ππ πΌπππππ‘π π₯ 100
b) πππππ+ππ’πππ‘ππ¦ ππ πΈπ₯ππππ‘π /πππππβππ’πππ‘ππ¦ ππ πΌπππππ‘π π₯ 100
c) ππππ’ππ ππ πΈπ₯ππππ‘π /ππππ’ππ ππ πΌπππππ‘π π₯ 100
d) πππππ πππππ₯ ππ πΈπ₯ππππ‘π /πππππ πππππ₯ ππ πΌπππππ‘π π₯ 100
Answer D
The concept of net barter terms of trade was introduced by F.W. Taussig. This concept was called as commodity terms of trade by Jacob Viner. It is defined as the ratio of export prices to import prices. It is given by the following formula:
net barter terms = πππππ πππππ₯ ππ πΈπ₯ππππ‘π /πππππ πππππ₯ ππ πΌπππππ‘π π₯ 100
