Contradiction on page 575 book 1?

CFA Level II Economics
#1

On the bottom of page 575 in book 1 are bullet pointed items on what to look for before a currency crisis. Bullet point 2 “Somewhat surprisingly, the trade balance displays no significant difference between its behavior in pre-crisis periods and in tranquil periods” and bullet point 4 “On average, there is some deterioration in the terms of trade in the months leading up to a crisis” seem to be in conflict. The terms of trade are proportional to the value of exports divided by the value of imports whereas the balance of trade, or trade balance, is the difference between exports and imports.

So the difference is unaffected but the ratio declines? That seems unlikely but maybe I’m missing something…

#2

^Just one of the myriad reasons why I chose to study Schweser books instead of CFAI.

#3

When i come across something like this, i will skip ahead and read the summary page and see if they have it on there.

and if it’s still not clear, i will go to investopedia and see if they say anything on it.

and then i will go online (perhaps this forum) to search for answer.

(i don’t know the answer to your question though. sorry! ^_^)