Description
Calculate a supplied terms-of-trade price-index ratio.
International economic quantities depend on currency quotation, valuation base, denominator, accounting boundary and reporting period. A unit value differs from a comparable price, while import penetration can exceed one under a supplied absorption definition. Tax, ownership and counterfactual terms remain explicit scenarios rather than verified economic facts.
Calculate a supplied terms-of-trade price-index ratio.
When to use this tool
Use Terms Of Trade Price Relative when you already have exportPriceIndex, importPriceIndex, base and need to calculate a supplied terms-of-trade price-index ratio.
How to use the tool and how it works
- Enter exportPriceIndex, importPriceIndex, base. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read termsOfTradeIndex. Use the output convention below.
Require positive export/import indices and base; return base*exportIndex/importIndex.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. |
| base | Positive output index scale; input price indices must share a compatible base. | Required. Finite number; strictly above 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| termsOfTradeIndex | Terms Of Trade Index | Required. Finite number. |
{
"input": {
"exportPriceIndex": 120,
"importPriceIndex": 100,
"base": 100
},
"output": {
"termsOfTradeIndex": 120
}
}Limitations and assumptions
- Indices need compatible reference bases and coverage; no index data, relative welfare change, current price or causal effect is estimated.
- 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
Use the complete underlying accounts, price indices, trade definitions and applicable source rules for an actual comparison. Reconcile valuation, timing, currency and coverage before interpreting a residual or weighted contribution as a broader economic result.
References
Similar or alternative tools
- Tariff Cif Fob Price Base
Apply a supplied tariff to a goods-only or freight-and-insurance-inclusive base.
- Trade Preference Origin Status Tag
Record explicit trade-origin status wording and its source.