Net exports Flashcards
1
Q
What factors affect net exports
A
Price level
Inflation
Exchange rates
Product quality
Quotas
Affordability
Tariffs
(other trade protectionist measures)
2
Q
What factors that affect net exports also affect product and price competitiveness
A
Exchange rates
Product quality
Inflation
3
Q
High inflation rates in the UK is likely to cause a decrease in net exports unless
A
Your product is of high quality and there are no other alternatives and if the buying country has a higher inflation rate.
