Predict what each of the following events would do to the terms of trade of the importing country and the exporting country, other things being equal. a. A blight destroys a large part of the coffee beans produced in the world. There will be favourable change in the terms of trade of coffee exporters, unfavourable change for coffee importers. b. The Koreans cut the price of the steel they sell to Canada. There will be favourable change in the terms of trade for Canada and unfavourable change in the terms of trade for Korea. c. General inflation of 4 percent occurs around the world. There will be unpredictable change in the terms of trade for the importing country and unpredictable change in the terms of trade for the exporting country.

Predict what each of the following events would do to the terms of trade of the importing country and the exporting country, other things being equal. a. A blight destroys a large part of the coffee beans produced in the world. There will be favourable change in the terms of trade of coffee exporters, unfavourable change for coffee importers. b. The Koreans cut the price of the steel they sell to Canada. There will be favourable change in the terms of trade for Canada and unfavourable change in the terms of trade for Korea. c. General inflation of 4 percent occurs around the world. There will be unpredictable change in the terms of trade for the importing country and unpredictable change in the terms of trade for the exporting country.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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