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Suppose that due to poor weather conditions there is a fall in the global supply of wheat

Suppose that due to poor weather conditions there is a fall in the global supply of wheat exports. Using a diagram like that in Figure 15.1(b), explain the effects on the terms of trade and balance of trade of (a) wheat exporters, and (b) wheat importers. (c) How are the effects on importers and exporters related to each other?

Nov 27 2019 View more View Less

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