6. See Johansson, 1989. The depreciating dollar in 2007-08 did of course change this picture dramatically. The
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6. See Johansson, 1989. The depreciating dollar in 2007-08 did of course change this picture dramatically. The trade conflict between the United States and Japan in mid-1995 concerning luxury cars again illustrated that exchange rate shifts alone will not necessarily change prices;
see Pollack, 1995, and Tagliabue, 1995.
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