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.
c. U.S. engineers develop a fusion reactor that replaces fossil fuel electricity plants.
d. A harvest failure in Russia.
e. A reduction in Japan’s tariffs on imported beef and citrus fruit.