Asked by Mindy Bounheuangvilay on Apr 24, 2024
If the domestic price is above the world price of a certain product, the domestic country will import the product.
Domestic Price
The price of goods or services within a country's borders, as opposed to international or import/export prices.
World Price
The international market price of a good or service, influenced by global supply and demand.
Import
Bringing in merchandise or services from overseas with the intent to sell them within a country.
- Gain an understanding of the notion of terms of trade and its role in international trade activities.
Learning Objectives
- Gain an understanding of the notion of terms of trade and its role in international trade activities.