163 | How Pakistan Can Increase Its Export? Ft. Gonzalo Varela
Thought Behind Things
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The Right Metric to Give Export Competitiveness
The right metric to give export competitiveness is actually the currency, or the free float of the currency. Cratiffs don't protect exporter. They actually dester their order, their incentive to exportthey reduce their incentive to exported. What the tariff does is it impedes competition and makes firms focus on protected domestic market. That's what tarivs do. Instead, you're right, a depreciated currency again, and remember what we were discussing thebeginning? Da's many other things, right? So i'm not saying that it is what we want. I'm just saying, from the export import point of view, what a depreciate currency does is it makes
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