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Measurement of international price conditions

Published Online:pp 92-100https://doi.org/10.1504/GBER.2007.012511

The expansion and diversification of international trade has meant, for many countries, that changes in the relationship between domestic and foreign prices have greatly increased importance. This article identifies the weaknesses of the terms of trade, the usual measure of price conditions in an economy's international sector, and proposes a new approach.

Keywords

terms of trade, export prices, import prices, international trade, price conditions