Answer to Question 1
There is evidence that the exchange-rate pass-through effect to import prices has been declining in developing economies, particularly for the U.S. One explanation offered for this trend is that the share of imports with prices more sensitive to exchange rate changes (such as food and beverages) has been declining. Also important is the fact that foreign exporters are increasingly pricing to market, where they adjust their export prices to minimize the impact on U.S. import prices as exchange rates change.
Answer to Question 2
Primary-export-led development policies are aimed at encouraging the exports of natural comparative advantage primary products. The hope is that these exports will generate substantial linkage effects that will bring about general economic development. Potential problems in this approach include the possibility of a secular deterioration in the country's terms of trade as well as volatility in world prices. Import-substitution policies seek to promote development by encouraging local industrialization behind initially high trade barriers. This is an example of the infant industry argument for protection. In practice, these policies have had dismal records, as trade barriers have imposed incredible distortions on domestic economies.
Common skin signs are often evidence of an illness or disorder. A macule is a discolored spot on the ...
The respiratory system and the process of gas exchange
The ancestral and modern-day tomato. (b) Phenotypic effect of the fw2.2 transgene in the tomato
The same pair of homologs, but with no exchange occurring between them
Compute the rate of discount allowed on a rotor-tiller that lists for $341.00 and is sold for ...
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.