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commodity terms of trade and the income terms of trade

You have the following information for a country for 2005, with all price indexes utilizing 1995 as the base year: The export price index is 120, the import price index is 130, the quantity index of exports is 115, and the quantity index of imports is 100. Calculate the commodity terms of trade and the income terms of trade for this country for 2005. Interpret your results

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Cmmodity terms of trade for 2005= export price index /import price index ...

Solution Summary

The commodity terms of trade and the income terms of trade are calculated clearly.

$2.19