Japan primarily exports manufactured goods, while importing raw materials such as food and oil. Analyze the impact on Japan's terms of trade of the following events:
a. A war in the Middle East disrupts oil supply.
b. Korea develops the ability to produce automobiles that it can sell in Canada and the United States.
TOT (terms of trade) = Price of exported goods / Price of imported goods
a) The Middle East countries are LARGE oil exporting countries, so changes in their output will affect the ...
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