Terms of trade effect


 

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Terms of trade effect

The effect of a tariff on the terms of trade. By reducing the demand for imports, a tariff levied by a large country causes the prices of those imported goods to fall on the world market relative to the country's exports, improving its terms of trade.



Similar Matches

Effective tax rate

Effective tax rate

The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividing the total tax paid by taxable income.


Information content effect

Information content effect

The rise in the stock price following a dividend signal, or publication of some other related news.


Income effect

Income effect

That portion of the effect of price on quantity demanded that reflects the change in real income due to the price change. Contrasts with substitution effect.


Locomotive effect

Locomotive effect

The effect that economic expansion in one large country can have on other parts of the world economy, causing them to expand as well, as the large country demands more of their exports.


Dilutive effect

Dilutive effect

Result of a transaction that decreases earnings per common share (EPS).


Further Suggestions

Harberger-Laursen-Metzler Effect
Substitution effect
Annual effective yield
weekend effect
International Fisher effect
Cause and Effect Diagram
Material Adverse Change or Effect
Fisher effect
Side effects
Effective Interest Rate
Small firm effect
Effective call price
Reinvestment effect
Effective margin (EM)
Effective protective rate
Weekend effect
Dynamic effects
Clientele effect
Noah Effect
Effective protection
Effective tariff
Effective rate of protection
Effective sale
Balassa-Samuelson Effect
Effective yield


 
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