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The total amount of exports, E, in a nation is mainly affected by two variables, see import function, the total foreign absorption and the real exchange rate.

E = E(A*,σ) 

 + -

For explanation of the positive and negative relationship between exports and absorption and the real exchange rate, see import function

See also

[1]

  1. ^ Burda, Wyplosz (2005): Macroeconomics: A European Text, Fourth Edition, Oxford University Press
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