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.
The four ways in which animals exchange heat with the environment are radiation, evaporation, convec
Skin signs are objective evidence of an illness or disorder. They can be seen, measured, or felt.
Situations Causing Changes in Respiratory Rate
The fact that a mother works outside the home has no negative effect on the well-being of her child ...
Four kinds of evidence supporting the theory that species evolve.
The Effect of Multiple Contributing Genes on Phenotypic Variation