Given that a country’s index of export price is 180 and that of import is 200; the terms of trade is?

A. 0.09
B. 2.00
C. 90.00
D. 380.00

Correct Answer:

Option C – 90.00

Explanation

Terms of trade = Index of export/ Index of import x 100

= 180/200 x 100

= 90