In this unit we learned apply the theory of comparative advantage to the international trade in the global economy, integrate the roles of international trade and economic growth in improving economic welfare in developed and developing economies, investigate the impacts of the diverse exchange rate systems on international trade and trade balances, and evaluate the pros and cons of trade protectionism such as tariffs, quotas, non-tariff barriers, and voluntary export restrictions on trade and the economy. Let's extend the discussion by examining the practical implications of these concepts.

Please explain why could the difference between a 2.5 percent and a 3 percent annual currency devaluation rate be of great significance over several decades.

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The disparity between a 25 percent and a 3 percent annual runtime would be of huge importance over decades period that has the effect of compoundingA ... View the full answer