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Inflation affects international trade competitiveness from "summary" of International Economics by Robert Carbaugh
When a country experiences inflation, it means that the general price level of goods and services is rising. This can have a significant impact on the competitiveness of the country's exports in the global market. As domestic prices rise due to inflation, the costs of production also increase. This makes goods and services produced in that country more expensive compared to those produced in countries with lower inflation rates. As a result, the country's exports become less competitive in the international market. Foreign consumers may choose to buy goods and services from countries ...
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