The shift in focus toward imperfectly competitive markets in domestic and international trade questions the concept of
A) official exchange rates.
B) complete currency pass-through.
C) exchange arbitrage.
D) trade-adjustment assistance.

Question

Quizplus · Accepted Answer

The shift towards imperfectly competitive markets in trade questions the concept of complete currency pass-through, as prices and costs do not adjust uniformly or completely with changes in exchange rates in such markets.

The Shift in Focus Toward Imperfectly Competitive Markets in Domestic