What does the term 'terms of trade' refer to in economic transactions?

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The prices paid for all goods that a country exportsThe prices obtained from all goods a country sends abroadThe prices earned from exports compared to the prices paid for importsThe price relationship between raw materials and finished products

Explanation

The terms of trade represent the ratio between the prices a country receives for its exports and the prices it pays for its imports, reflecting the relative value of trade goods.