How do a country’s terms of trade differ from its gains from trade?

How do a country’s terms of trade differ from its gains from trade? The rate at which one commodity (say, export good) is exchanged for another commodity (say, import good) is called terms of trade. Or what import the export buys is called TOT. If the actual TOT lies between two domestic cost ratios then … Continue reading How do a country’s terms of trade differ from its gains from trade?