NULL

The purpose of this paper is to establish a framework for the analysis of trade responses to exchange rate changes as well as to provide some detailed quantitative answers as regards the structure of Swiss imports. This paper's contribution is to have established - once more - that prices do matter in international trade, and that trade reactions are quite swift - but also, that true expenditure switching remains very limited.

Changing Patterns of Global Trade outlines the factors underlying important shifts in global trade that have occurred in recent decades. The emergence of global supply chains and their increasing role in trade patterns allowed emerging market economies to boost their inputs in high-technology exports and is associated with increased trade interconnectedness.The analysis points to one important trend taking place over the last decade: the emergence of China as a major systemically important trading hub, reflecting not only the size of trade but also the increase in number of its significant trading partners.

The subject of this book is the kind of economic interaction and interdependence that has arisen among nations in the contemporary world economy, the nature and significance of the pattern of trade balances that have resulted from them, and the question of what, if anything, should be done by national governments about that pattern. The need for international coordination of economic policies is also investigated.

In recent years, exchange rates, prices, and world trade have taken on a new significance and are now among the most widely debated issues in economics. Exchange Rates, Prices and World Tradeoffers a simple yet sophisticated analytical approach to deal with the most controversial issues in exchange rate economies. Meher Manzur provides a systematic treatment of the interaction between national price levels and exchange rates, the formation of expectations regarding exchange rates, and the effects of real exchange rate changes on trade flows. Drawing from the most current information, he provides a new methodology for the listing of purchasing power parity and an original approach to the measurement of variation in the structure of relative prices and use of new measures in econometric work. He also presents a model to link the patterns of world trade to variations in relative prices and examines modern issues related to the characteristics of foreign exchange markets. Exchange Rates, Prices and World Tradeprovides strong analytical frameworks and empirical results which will be of great use to researchers, policy makers, and those studying finance.