International Trade To Affect Price
The influence on international market prices, national income and employment in the countries participating in international trade. Exports to the demands of society, ie the amount of goods and services that people want in the country. In contrast, imports to reduce domestic demand.The demand will depend on employment and national income, and partly on the size of net exports, ie the difference between exports and imports. If net exports are positive, this means more than the import, export, employment and national income are increasing. The level of net exports will be determined largely by the exchange rates of the currencies of the countries concerned. For example, the rupee fell against the U.S. dollar, prices of export goods from Indonesia are relatively cheaper in the U.S., is likely to increase exports. By contrast, prices of U.S. goods are relatively expensive, so that imports would fall. Thus, the depreciation of its currency exchange rate tend to increase net exports, and vice versa.
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