Asked by Alyssa Nation on May 06, 2024
Verified
If the world price of a product rises relative to the domestic price in a trading nation, then, for that product,
A) exports and imports will increase.
B) exports and imports will decrease.
C) exports will increase and imports will decrease.
D) imports will increase and exports will decrease.
World Price
The international market price at which goods and services are traded between countries.
Domestic Price
The price of goods or services within a particular country, influenced by domestic supply and demand, taxation, and other economic factors.
Exports
Products or services that are manufactured in one nation and purchased by consumers in a different country.
- Analyze how world prices influence domestic exports and imports.
Verified Answer
Learning Objectives
- Analyze how world prices influence domestic exports and imports.
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