Factors that may lead to favourable terms of trade
Answer Text: Factors that may lead to favourable terms of trade:The country is experiencing a favourable terms of trade if:-The prices of imports decline and those of export remains the constant-The prices of imports declines while those of exports increase-The price of imports remains constant while those of exports increase-The prices of import and export increases but therate of increase in export is higher-Both prices decrease but the decrease in import prices is higher