Assume that a shock in world markets results in the price, Finance Basics

Assume that a shock in world markets results in the price

Question: Assume that a shock in world markets results in the price changes described in the Table. Using the information on market shares, calculate

(1) the trade-weighted US world export price

(2) the trade-weighted U.S. world (fob) import price and

(3) its terms-of-trade. Has the U.S. terms of trade improved or deteriorated?

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Finance Basics: Assume that a shock in world markets results in the price

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