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The change in the mean value of labor is small with only 2.5% of annual growth rate. As for the trade volume, the mean values of both imports and exports jumped twofold, indicating Chinaâs increasing participation in international trade.
Aside from factors such as interest rates and inflation, the exchange rate is one of the most important determinants of a country's relative level of economic health.Exchange rates play a vital role in a country's level of trade, which is critical to most every free market economy in the world.umerous factors determine exchange rates, and all are related to the trading relationship between two countries. Remember, exchange rates are relative, and are expressed as a comparison of the currencies of two countries. The following are some of the principal determinants of the exchange rate between two countries.