Which of the following has been offered as a possible explanation to the evidence that the exchange-rate pass-through effect to import prices has been declining in developed economies?
A)That foreign exporters have been increasingly adopting "pricing-to-market" policies.
B)That transaction costs have decreased in recent years.
C)That global leaders have encouraged this phenomenon.
D)That the share of imports with prices more sensitive to exchange rates has been increasing.

Question

Quizplus · Accepted Answer

"Pricing-to-market" policies adopted by foreign exporters have been suggested as a possible explanation for the declining exchange-rate pass-through effect.

Which of the Following Has Been Offered as a Possible