Is a situation in which a country does not trade with other countries. The is the ratio at which a country can trade its exports for imports from other countries.

Autarky, terms of trade

Explanation:

Autarky tend to be enacted when a country is self-sufficient. Meaning that they are capable to produce all type of goods and services that they need without the help of another country. This is why they choose to cut off the trade with another country.

As for who do involved in the international trades, they use term of trades with one another as some sort of protection to their local market. They will set up quotas, tariffs , and price floor to foreign products to ensure that local traders can compete.

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