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[Term] Terms of trade [Definition] 
Terms of trade measures the relationship between the prices a country receives for its exports and the prices it pays for its imports. A rising terms of trade means the nation is getting better prices for its exports relative to what it pays for imports, and vice-versa. Australia benefitted from rising terms of trade during the mining boom as the prices of iron ore, coal and other commodities surged, while the price of many imports such as electronics and clothes stayed steady or fell. Economists are cautious about drawing too many conclusions from high or low terms of trade figures, but trends in the movement of the terms of trade are useful for predicting changes in the standard of living.
Budget 2014: Tony Abbott opens door to 'horse-trading' with minor parties in Senate to pass key measures - Federal Budget 2014 - ABC News (Australian Broadcasting Corporation)
Definition