ⅱ international business affects domestic economic system inflation

1 the category and quantity of imports or exports that affect the domestic commodity total amount and structure can increase or decrease the contradiction of total amount and structure requirement.

2 the price of import and export affects the price of domestic commodity, the degree of this two kind of factors affecting domestic inflation is decided by the degree of domestic economy depending on outside, the more it depends on outside, the more it is affected by international environment, on the contrary, the less it depends on outside, the less it is affected by international environment

note

1 the value law is universal in the market economic system

that the variation of price is normal phenomenon in the market is expressed by value law. in mixed economy, the most merchants’ price obeys value law. for the reason of natural or social, some merchant’s price is higher than its value even if there is balance between its supply and demand; some merchant’s price can not be far off its value even if its demand exceeds supply strongly. that is the effect being controlled by country with limited price or sbsidy.though not all time these merchants’ price is based on its value, the price also will rise when its supply less demand, otherwise will down.

2. economic development is a unity of both equilibrium and disequi

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