Relationship between the prices at which a country sells its exports and the prices paid for its imports. If a country's export prices rise relative to import prices, its terms of trade are said to have moved in a favourable direction, since, in effect, it now receives more imports for each unit of goods exported. The terms of trade, which depend on the world supply of and demand for the goods involved, indicate how the gains from international trade will be distributed among trading countries. An abrupt change in a country's terms of trade (e.g., a drastic fall in the price of its main export) can cause serious problems in its balance of payments. Seealso comparative advantage.
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"The Path of Thorns (Terms)" was a hit song by Sarah McLachlan from her album, Solace. It was her first Top 40 chart hit in her native Canada, and the 50 millionth song purchased from the iTunes Music Store. The original music video for this song is distinguished by the fact McLachlan was filmed performing the song in the nude.