1. There are two countries trading. The one (A) devalues by 25%, while in both A and B their prices go up 25%. Talk on the issues of standard of living in the two countries, as well as competitiveness (standard of living is affected by both productivity and competitiveness.). Secondly, would your answers differ, if in the case of country, A there is no devaluation, but a 25% productivity increase and a commensurate price decrease? (for B, its prices still rise by 25% in the second scenario).

finance