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A rise in the cost of Chinese labour leads to a rise in the price of Chinese steel to 28,000 yuan per metric tonne. The

A rise in the cost of Chinese labour leads to a rise in the price of Chinese steel to 28,000 yuan per metric tonne. The nominal exchange rate is still C$1 for 5 yuan. What has happened to the real exchange rate? Does this make it more or less likely that the Cambridge car factory purchases steel from Dofasco in Hamilton? - before the RER = 1.07 now its 0.54 what does this mean

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