Problem
1. Draw the supply and demand graphs for exports and imports for a small country that revalues. Do the same for a larger country. Explain the shifts that occur in the lines.
2. Why might a typical poor developing country be more worried about whether the price elasticities of demand for its exports and imports will be high enough to meet the Marshall-Lerner condition than would an industrialized country?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.