Although I understand the exchange differences cause difficulties for some countries, I see the currency difference as a result of a initial trading patterns. This all reminds me of Dependency Theory in Latin America. Since those countries are primarily single-export economies and they need to import the majority of their goods from stronger currency countries, they always have current account deficits, rely on more developed nations, and struggle with sustainable development. As this cycle continues, there is more currency of the less developed country in circulation and so thier currency further devlaues.

Anyway, I think you are on to something. I think elimination of currency differences would force a restructuring of this trade pattern, even if those Latin American countries have the comparative advantage in their crops.

i just know that on the consumption side a lot of countries sort of “skip” technologies…like a country will have basically zero landlines but then they will have a 70% cell phone ownership rate. so what i’m thinking is…is it possible to do this same kind of skipping deal on the production side.

does this make any sense? what do you think?