Question

Difference between net barter and gross barter terms of trade

Answer 1

Answer:

Explanation:

The higher the ratio between quantities of imports and exports, the better the gross terms of trade. ... When the net barter terms of trade (Г) equal the gross barter terms of trade (Г ), the country has balance of trade equilibrium. It shows that total receipts from exports of goods equal total payments for import goods.

Answer 2

Answer:

Hello Reader,

Gross Barter term of trade: It is explained as the ratio of imports of total physical quantities to the exports of total physical quantities of a country.

Net Barter term of trade: It is explained as the ratio of the price of exported goods to the price of imported goods of a country.

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