The terms of trade between two countries refers to what price the two countries agree upon for their imports and exports. Because, by definition, terms of commerce refer to the ratio of export prices to import prices.
The ratio of the index of export prices to the index of import prices is known as terms of trade.
If export prices rise faster than import prices, a country's terms of trade improve, allowing it to buy more imports for the same quantity of exports.
Thus option A is correct.
For more details about terms of trade, click here
https://brainly.com/question/17928017
#SPJ1
