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Impact on Imports and Exports Prices Due to Inflation and Deflation

This topic has 1 reply, 2 voices, and was last updated 10 years ago by Ken Garrett.

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September 1, 2015 at 12:11 pm #269427
samiyam29
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Can You pease explain The Impact on Imports and Exports Prices Due to Inflation and deflation? With a countrys example.
September 1, 2015 at 12:35 pm #269428
Ken Garrett
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If a country has high inflation, the price of goods there will increase. However, in theory, that country’s currency should decrease in value so that the price of exports in the buying country will remain the same.
Similarly with imports.
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