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Abstract
A theoretical model is developed and used to evaluate the effects of either a devaluation or revaluation upon production, consumption, trade and price of a particular commodity in both exporting and importing countries. This model is used to analyze the theoretical effects of a devaluation on the agricultural sector of an economy. One concludes that a devaluation will have only a small impact on agricultural trade. What effect there is will be primarily a price effect rather than a quantity effect. Therefore a country cannot necessarily look to its agricultural sector for the major contribution to improving the balance of payments position via a devaluation.