ToT
Business & Finance abbreviation · Economics
| Stands for | Terms of trade |
|---|---|
| Categories | Business & Finance |
ToT stands for Terms of trade, an economics abbreviation.
Ratio of a country's export prices to its import prices, usually expressed as an index. An improvement means a country can buy more imports for the same quantity of exports.
Example: Higher iron ore prices gave Australia a sharp boost to its ToT and national income.
Usage notes
Commodity exporters such as Australia, Chile and the Gulf oil producers see large terms-of-trade swings when commodity prices move. The Prebisch-Singer hypothesis argues that primary commodity prices tend to fall relative to manufactured goods over the long run. Australian and Indian economists commonly use the abbreviation.
Related abbreviations
More economics abbreviations
- RPI – Retail Prices Index
- SDR – Special drawing rights
- SEZ – Special economic zone
- SNB – Swiss National Bank
- SOE – State-owned enterprise
- TFP – Total factor productivity
- U-3 – Official unemployment rate (U-3)
- U-6 – Broadest unemployment rate (U-6)
- UBI – Universal basic income
- WPI – Wholesale price index
- YCC – Yield curve control
- ZIRP – Zero interest-rate policy