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Define income terms of trade.

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The income terms of trade (ITT) is a measure of the value of exports divided by the unit value (price) of imports, or the value of exports in terms of import products.
It is calculated by multiplying the commodity terms of trade by the amount of exports.
As a result, import capacity increases.

Final answer:

Hence, the measure of the value of exports divided by the unit value (price) of imports is known as trade.The income terms of trade (ITT) is a measure of the value of exports divided by the unit value (price) of imports, or the value of exports in terms of import products.
It is calculated by multiplying the commodity terms of trade by the amount of exports.
As a result, import capacity increases.

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