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.
b. Korean producers cut the price of the steel they sell to Canada.
c. General inflation of 4 percent occurs around the world.
d. Violation of OPEC output quotas leads to a sharp fall in the price of oil.