Is there any relationship between international trade and the price level faced by consumers, in the context of economics?
The unfeasibility of answering the question is rooted in the lack of comprehensive data and rigorous analysis.
According to economic theory, the existence of a high volume of imports may expose domestic firms to heightened competition, which frequently causes prices to rise.
According to economic theory, the existence of a high volume of imports may expose domestic firms to heightened competition, which frequently causes prices to rise. The link between international trade and productivity growth might cause a decrease in consumer prices. The uncertain evidence concerning the influence of international trade on consumer prices has led to contentious debates among economic scholarsDespite different research outcomes, a decisive verdict is yet to be reached. The unfeasibility of answering the question is rooted in the lack of comprehensive data and rigorous analysis.