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What is meaning of Relative Price Effects
This final linkage occurs when there is free exchange rate between countries, which means the exchange rate is allowed to appreciate or depreciate. It causes change in the relative price of goods and services between countries. This in turn affects the demand for imports and exports. This effect, however, works only when there is less than a completely fixed exchange rate.
Issue of additional preference shares: In the Bristol Aeroplane Case it was said of the issue of additional preference shares that: "the existing prefere
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