Monday 23 Jul 2018 | 08:15 | SYDNEY
Monday 23 Jul 2018 | 08:15 | SYDNEY

Tuesday linkage

By

Sam Roggeveen

@SamRoggeveen

7 December 2010 10:03

When the terms of trade are high, the international purchasing power of our exports is high. To put it in very (over-) simplified terms, five years ago, a ship load of iron ore was worth about the same as about 2,200 flat screen television sets. Today it is worth about 22,000 flat-screen TV sets– partly due to TV prices falling but more due to the price of iron ore rising by a factor of six.