In this era of new revolution of globalization and trade liberalization, exchange rates (ER) are one of the fundamental factors in international trade. This research focus on the determinants of trade i.e. Import, export, industrial growth, consumption level and oil prices fluctuation brings...

This paper investigates whether China can benefit from a trade surplus in one period, using it to pay off the debt in the next period by manipulating the exchange rates. If the marginal utility of income is nonincreasing in the exchange rate, then the equilibrium exchange rates that yield a...