Canada Is Both an Importer and an Exporter of Automobiles

Canada is both an importer and an exporter of automobiles. If Canada exports more automobiles than it imports, and the price of automobiles rises, then Canada's terms of trade will likely

A) deteriorate because of the loss of exports that would result.
B) remain the same because the index of export prices would rise by the same amount as the index of import prices.
C) deteriorate because the loss of exports would be more than offset by the gain in imports.
D) improve because the index of export prices would rise and the index of import prices would remain unchanged.
E) improve because the index of export prices will rise more than the index of import prices.