Which among the following is taken as the real measure of a country 39 s international competitivene...........

Economics- Phase (I & II) Balance of Payment and Foreign Exchange Markets

Which among the following is taken as the real measure of a country's international competitiveness?

Real exchange rate

Nominal exchange rate

Superfluous exchange rate

None of the above

- Real exchange rate:

- Reflects a country's international competitiveness.

- Takes into account price level differences between countries.

- Influences trade balance and economic productivity.

- Correct Answer.

- Nominal exchange rate:

- Simply the market rate for foreign currency exchange.

- Does not account for inflation or purchasing power differences.

- Provides limited insight into real competitiveness.

- Superfluous exchange rate:

- Not a standard economic term.

- Likely a distractor option in this context.

- None of the above:

- Incorrect as real exchange rate is a valid measure.

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