It is here that the various sources of diversity that I have mentioned play a role. c)  Changes in cost and price competitiveness mainly reflect changes in relative unit labour costs and persistent inflation differentials. These demonstrate that there is significant leeway for influencing competitiveness, even in the absence of nominal exchange rate adjustments.
This is evident from the IMF's latest projection of world economic growth, which was revised in September. Based on a substantial upward revision of the growth projection for Asian emerging economies, the projected growth rate of the world economy has been pushed up despite the downward revision of the growth projection for the U.S. economy. II.