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What are the factors affecting the relative prices of goods

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Q: What are the main factors affecting the relative prices of goods? Such effect can induce changes in exchange rates and deviations from purchasing power parity. Do you agree? These changes may create a correlation between the exchange rate and the terms of trade. Can governments engage in foreign exchange market operations to exploit this correlation and affect the terms of trade?

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Marketing Management: What are the factors affecting the relative prices of goods

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