Terms of trade and food security analysis

Instead of looking at price levels and trends of discrete commodities, the terms of trade allows analysts to look at these prices and trends in relation to the power of exchange. More specifically, the guidance will: (1) describe the different types of TOT that can be used in food security monitoring and reporting and the utility of each; (2) provide examples of TOT analysis that can be used in reporting; (3) describe how to calculate TOT; (4) discuss the limitations of using TOT as a purchasing power indicator; (5) describe best practices in presenting TOT in reporting, both in text and through graphs. References to other market guidance materials are made throughout the guidance. These other guidance materials go into considerably greater depth on a particular topic. (Author abstract, modified)