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(b) Suppose LAN's central bank strongly recommends a currency depreciation, noting a 1% - 1.5% of the country's trade balance is based on complex supply

(b) Suppose LAN's central bank strongly recommends a currency depreciation, noting a 1% - 1.5% of the country's trade balance is based on complex supply chain relationships with bilateral trading partners. Would you support this? If the assumption is you are leaning towards an agreement, briefly describe whether your support is based on an abrupt or gradual currency depreciation process; explain why. Further, include an explanation on how said process could affect LAN's currency and its export competitiveness. (ref. ch. 29.1/29.4 and pg. 696 - 700). (ref. ch. 28/section 28.4)

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