Concept:Terms of trade improve when a country earns more for its exports compared to what it pays for imports.Explanation:Terms of trade is the ratio of export prices to import prices.It is favourable when export prices rise relative to import prices.This means the country can buy more imports with the same quantity of exports.So, a favourable movement occurs when the prices of exports rise faster than the price of imports.Answer:A. exports rises relative to the price of her imports.