Concept:Terms of trade is the ratio between export prices and import prices. It improves when a nation's exports can buy more imports than before.
Explanation:A country can improve its terms of trade by cutting the amount of foreign goods it buys.
Tariffs, import quotas, and similar measures are common ways to lower the demand for imported goods.
When import demand falls, overseas sellers often reduce their prices to attract buyers.
Cheaper imports mean the import price index falls.
Since terms of trade is
import price indexexport price index, a fall in the denominator raises the ratio.
Thus, the terms of trade improve.
Lowering export duties would make exports cheaper and worsen the ratio.
Collective bargaining is not the main instrument for this, and currency changes do not directly guarantee improvement.
Answer:D. reducing demand for imported goods.