07-30-2012, 04:32 PM
[quote name='priyarawat229' date='26 July 2012 - 01:11 PM' timestamp='1343304185' post='115244']
Part of the reason for this is that international trade with countries where production costs are cheaper because wage rates are lower and raw materials widely available means that there is greater competition and this means that the end price to the consumer is lower than it might be for the same goods to be manufactured at home.
[/quote]
Thank you Priya but the following still remains unanswered:
what mechanisms are in place to stop a country in printing extra currency to ensure that there is always a net goods and service flow into the country?
I would greatly welcome your thoughts on the above. Thanks!!
Part of the reason for this is that international trade with countries where production costs are cheaper because wage rates are lower and raw materials widely available means that there is greater competition and this means that the end price to the consumer is lower than it might be for the same goods to be manufactured at home.
[/quote]
Thank you Priya but the following still remains unanswered:
what mechanisms are in place to stop a country in printing extra currency to ensure that there is always a net goods and service flow into the country?
I would greatly welcome your thoughts on the above. Thanks!!