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  1. Two country model CIE economics [ edit ] In the simplified case of two countries and two commodities, terms of trade is defined as the ratio of the total export revenue[ clarification needed ] a country receives for its export commodity to the total import revenue it pays for its import commodity.
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The Basics Explained in Simple Terms (Forex If China required more the US could do better producing the apparel This implies the range, or limits, of the terms of trade.

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