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      The calculation of the terms of trade index

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        The rate of exchange of export goods with imported goods. It is also known as the price of import and export commodities, usually expressed by index, that is, the price index of import and export commodities. The formula is: trade condition index = export price index / import price index * 100. For example, the price index of import and export commodities is 100, the import and export commodity prices have increased, but the increase in the range is different, the price of export commodities is raised by 10%, and the price of imported goods is raised by 5%, then the index of trade conditions is increased.

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