Model Setup

Denote:

• qiljh – flow on link h joining node il with node j

• qjklh – flow on link joining node j with node klh

• ?il1jh – the price associated with the product in currency h transacted between manufacturer il and retailer j

• ?j2khl – the price associated with retailer j and demand market k in currency h and country l

• ?3khl – the price of the product at demand market k in currency h and in country l

• eh – the rate of appreciation of currency h against the basic currency

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