Effect of interest rate and inflation changes (continued)

Please help…..kindly bear with me……..

“Year 1 Goods cost £1000 to make in UK. Exchange rate currently 1£ = $1.5.
Price of goods in USA $1,500.
Uk inflation 10%; Us inflation 3%
Exchamge rate after,1 year = 1.5 x 1.03/1.10 = 1.4045
Year 2 To make the goods would cost £1,000 x 1.1 = £1,100
Price in US would be 1,100 x 1.4045 = $1,545
Of course 1545 is 1500 x 1.03,,but all competing goods made in the USA would have inflated by 3% too.
So, in theory no,differemce in competetive position”

———————————————————————————————————————-

I am not disputing the theory. I need an explanation of the following:-

Of course 1545 is 1500 x 1.03,,but all competing goods made in the USA would have inflated by 3% too.
So, in theory no,differemce in competetive position
———————————————————————————————————————-

can we go step by step so that I can understand :-

First of all I am writing this question in terms of the US competitive position because we are dealing with a US price.

1) inflation lower – US Dollar has strengthened – imports are cheaper – therefore competitive position has weakened. (This is the one part of the theory) ie. the $1,545

2) (The second part) – inflation is lower – therefore competitive position strengthens in the
US.

How does the following fit in with the theory no. (2).I am having difficulty with the quote below.

“Of course 1545 is 1500 x 1.03,,but all competing goods made in the USA would have inflated by 3% too.”

Does this mean that since competing goods have inflated by 3% it makes the US less competitive which is contrary to (2). OR Because inflation in US is lower than that in the UK, therefore competitive position strengthens in line with (2). OR Because the price of local goods has also risen by 3%, there is less competition from the US companies (competitive position weakened- contrary to (2).)

Much appreciated