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Relative Export Prices
Relative export prices refer to the prices of a country's exports relative to the prices of other countries' exports. In other words, it's a measure of how competitive a country's exports are in the global market. Here are a few reasons why relative export prices are important:
- They affect a country's ability to compete in international markets. If a country's export prices are higher than its competitors', it may be harder to sell its products abroad.
- They can impact a country's balance of payments. If a country's exports are relatively expensive, it may have a trade deficit (more imports than exports).
- They can indicate a country's competitiveness and productivity levels. If a country's exports are cheaper than its competitors', it may be a sign of a strong and productive economy.