why does higher prices tend to decrease exports,?

Answer 1

Higher prices for our goods makes the goods produced domestically in other countries cheaper in comparison. Since those goods are cheaper, they are purchased more, decreasing the amount of our goods that will be exported to those countries.

Answer 2

Not necessarily! It also depends on the exchange rate. Suppose that you have an item with USD1 price and the exchange rate for USD/Yen is 120 (1 USD = 120 Yens). So you product will cost 120 yens for a Japanese. Let's assume the price of your product went up to USD2 and the exchange rate remained constant. So the product will cost 240 yens for a Japanese and they will stop buying it and you exports will decrease. However, if the exchange rate falls down to 1 USD = 60 Yens, then the price of your product for a Japanese would be still 120 yens (2*60) and they will keep buying your products and your exports won't change.

Answer 3

a million. The Fed has now not altered the money grant. 2. there has been certainly no interruption indoors the oil grant. 3. Oil traders are speculating and that's the only reason the fee is starting to be. It happens each and each time.