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Real exchange rates and mnc competitiveness

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Real Exchange Rates and MNC Competitiveness

a. Define the real exchange rate R(t), indicating the variables used.

b. What is the impact on MNC competitiveness and relative purchasing power of consumers if and when R(t) > 1?

c. Why is it important to use real exchange rates when discussing industry competitiveness in foreign markets?

Reference no: EM132843015

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