How to Calculate relationship b/w price change & change in exchange rate of Rupee V/S Dollar, Euro and Yen.?

Question

Can anybody also site some available paper (on internet) on this subject.

Answer 1

You shouldn't need a paper on this. The change in price moves in proportion to the change in exchange rate between all currencies.

If you are talking about how this will affect demand/supply, then that is more complex and will depend on the goods and services concerned. Some goods (with a low price elasticity of demand) will not be affected, but high price elasticity of demand will result in a greater sales change (up or down). Another factor to consider is how cheap your particular goods are compared to those supplied by competitors who do not have costs based in Rupees.