Problem: What would each of the following events do to the terms of trade of the importing country and the exporting country, other things being equal ?
1) A blight destroys a large part of the coffe beans produced in the world.
2) The koreans cut the price of the steel they sell to Canada.
3) General inflation of 10 percent occurs around the world.
4) Violation of OPEC output quotes leads to a sharpfall in the price of oil.