assumptions have until very recently usually been made about it. We refer to the relation of exchange rate changes, export prices … in the exchange rate might also alter the relationship between the export price and the domestic price of a given product …

construction of trade models that a country's export price for a particular product is identical to its domestic price. Any impact … of foreign or domestic events on prices is expected to fall identically on the export and the domestic price for a good … are fairly substantial and long-lasting divergences between export and domestic price changes for the same or closely …