terms of trade (1 Viewer)

[kooltrainer]

yr 1 terms of trade 100
yr2 terms of trade 107.9
yr3 terms of trade 98.2
yr4 terms of trade 100.8

outline a possible economic implication of the terms of trade in year 2 for this economy (3 marks)

 

[karnage]

Feeling abit rough atm (friday afternoon blues) but i would talk about how an increased ToT means increased export revenue (since ToT = for a given volume of imports i.e. volume doesnt change ) which is an improvement in the CAD blah blah economic growth.

 

[kooltrainer]

oh is that what implications mean

 

[karnage]

Think of implications as effects, consequences etc.