Concept:Terms of trade measures the ratio of export prices to import prices. It improves when imports cost less or import demand falls.Explanation:Terms of trade is expressed as:Terms of Trade=Index of Import PricesIndex of Export Prices×100If a country reduces its demand for imported goods, it spends less on imports. This helps the country export more than it imports, improving its terms of trade. Revaluation of currency makes imports cheaper and exports expensive, which can worsen trade balance. Lower export duties affect revenue, not necessarily terms of trade. Collective bargaining does not directly affect trade prices. Therefore the correct method is to reduce demand for imported goods.Answer:C. Reducing demand for imported goods