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Terms of trade between agriculture and industry has reference to
Relative price movements between the two sectors
Relative quantities of production in the two sectors
The extent of trade existent between the two sectors
Relative international valuation of the agricultural produce in contrast to the industrial produce
Terms of trade = ratio of prices of agricultural products to that of prices of industrial products. This is analogous to International Terms of Trade that are given by the formula: (Price of exports)/ (price of imports).
By: Kamal Kashyap ProfileResourcesReport error
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