Economics A Level (DONEEEEEEE): Say that Portugal's Exports of Wine, in Index Numbers, increased from 102 to 120, and that Portugal's Imports did not Rise at all. What happens to Portugal's term of trade index?

Question

Say that Portugal's Exports of Wine, in Index Numbers, increased from 102 to 120, and that Portugal's Imports did not Rise at all. What happens to Portugal's term of trade index?

eric_galvao · Accepted Answer

-Because Exports have risen, its Term of Trade Index would be more Higher and thus Better off
-Portugal would be able to Afford more Imports

Economics A Level (DONEEEEEEE)

Say that Portugal's Exports of Wine, in Index Numbers, increased from 102 to 120, and that Portugal's Imports did not Rise at all. What happens to Portugal's term of trade index?

-Because Exports have risen, its Term of Trade Index would be more Higher and thus Better off -Portugal would be able to Afford more Imports

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