Factor affecting terms of trade
Any countries bilateral or multilateral trade affected by geographical position, natural resources, economic development level and political factors. 1. The geographical location. Mid-latitude moderate climate, coastal areas, the transportation is convenient, good for development of international trade. Here are the key factors that affect the foreign exchange rates or currency exchange rates. Coronavirus (COVID-19): Terms of Trade. All of these factors determine the foreign exchange rate fluctuations. If you send or receive money frequently, being up-to-date on these factors will help you better evaluate the optimal time for Cultural and social factors might also impact a government’s intervention in trade. For example, some countries’ governments have tried to limit the influence of American culture on local markets by limiting or denying the entry of American companies operating in the media, food, and music industries.