The article examines how exchange rates affect international trade and inflation in developing countries, focusing on Bangladesh. The researchers found that exchange rates have a positive impact on trade balance in the short- and long-run. They also discovered that changes in exchange rates can influence import prices, but this doesn't always lead to higher consumer prices. Trade liberalization plays a significant role in Bangladesh's trade and inflation. Additionally, hysteresis in international trade is specific to certain products and countries, and sunk costs don't have a big impact on hysteresis.