The role of real exchange rate changes and redistribution of world expenditures in international macroeconomic adjustment is as old as the economics science. A truth is that both the forces are simultaneous and will continue to play the key role in the process of international adjustment. A large number of literature estimated trade effects of real exchange rate changes and shifts in relative incomes and drew policy implications for the resolution of global payment imbalances. Only a few studies, however, considered the phenomenon of international organization of production into the...