Description
Multiply positive referenceScale by exportPriceIndex / importPriceIndex for termsOfTrade.
A trade index or share compares values on a declared price, currency, period, and coverage basis. Changing a denominator or quote orientation can change the interpretation substantially.
Multiply positive referenceScale by exportPriceIndex / importPriceIndex for termsOfTrade.
When to use this tool
Use Terms Of Trade Index One Basket Term when you need an explicit trade-ratio or index component.
How to use the tool and how it works
- Enter exportPriceIndex, importPriceIndex, referenceScale. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read termsOfTrade. Use the output convention below.
Multiply positive referenceScale by exportPriceIndex / importPriceIndex for termsOfTrade.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| exportPriceIndex | Export Price Index | Required. Finite number; strictly above 0. |
| importPriceIndex | Import Price Index | Required. Finite number; strictly above 0. |
| referenceScale | Reference Scale | Required. Finite number; strictly above 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| termsOfTrade | Terms Of Trade | Required. Finite number. |
{
"input": {
"exportPriceIndex": 120,
"importPriceIndex": 100,
"referenceScale": 100
},
"output": {
"termsOfTrade": 120
}
}Limitations and assumptions
- Both indices need compatible bases and coverage; a caller-selected scale is not necessarily 100 and does not measure trade welfare.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Check source statistical definitions and compatible bases before comparing countries, partners, or time periods.
References
Similar or alternative tools
- Terms Of Trade Index Contribution
Calculate 100 × exportPriceIndex / positive importPriceIndex, then multiply by suppliedWeight in [0, 1] for weightedContribution.
- Real Exchange Rate Price Level Factor
Multiply nominalDomesticPerForeign by foreignPrice and divide by domesticPrice, requiring positive inputs.