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i)Terms of trade: the rate at which exports on one country
exchanges with imports. ToT = Price index of exports
determines whether the trade between one country and another is
favorable.
ii)Balance of payment: the difference between both capital and
current exports and imports of a country. If the value of exports
is higher, the country experiences a surplus and vice versa. It
determines whether a country is experiencing surplus in I
iii)Exchange rate: rate at which a country’s currency exchanges
with another. This rate determines the value of exports and
imports/ shows its indication of a country’s economic strength.
v)Balance trade: the difference between the value of a country’s
visible tangible imports and its value of exports is higher than
imports.
vi)Determines whether a country is experiencing surplus/ deficit
trade
v)Common market: an agreement between countries that allow
free movement of goods and factors of production. This allows
mobilization of resources/ trade without restriction
Githiari answered the question on September 22, 2017 at 20:05
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