- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Hello sir, how does inflation make exports expensive and imports cheaper?
Again, this is really assumed knowledge from Paper BT (was Paper F1).
If your country has a high level of inflation then prices of goods in your country will get a lot higher.
Imports from other countries with lower inflation will not increase as much and so they become cheaper compared to goods produced in your own country.
Similarly, your country will be charging a lot more for goods you export to other countries which make them more expensive compared to the same goods bought in the other country.