FIGURE 6-12: The Impact of Protectionist Trade Policies on the Real Exchange Rate A protectionist trade policy, such as a ban on imported cars, shifts the net-exports schedule from NX(ε)1 to NX(ε)2, which raises the real exchange rate from ε1 to ε2. Notice that, despite the shift in the net-exports schedule, the equilibrium level of net exports is unchanged.