Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

  1. For each of the following events, explain the likely effect on
    Canada’s terms of trade. Your existing knowledge of Canada’s
    imports and exports should be adequate to answer this question.
    a. A hurricane damages much of Brazil’s coffee crop.
    b. OPEC countries succeed in significantly restricting the
    world supply of oil.
    c. Several new large copper mines come into production in
    Chile.
    d. A major recession in Southeast Asia reduces the world
    demand for pork.

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