Question

If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price, the country will be an exporter of the good.

Answer 1

The Domestic price at which a commodity trades within a country, in contrast to the world price.

what is the  different between domestic price and world price?

A specific sum of money known as the price must be paid by the customer in order to obtain goods or services. Domestic demand and domestic supply, at the point of equilibrium where no trading occurs, determine the costs of the commodity.

However, as a result of the development of worldwide trade, the prices are now referred to as world prices. The global price is determined by the moment at which global demand and global supply are balanced.

When the domestic price is different from the global price, it has a significant influence. when compared to other countries, the domestic pricing is high. International trade consists of two parts. The first is the symbiotic link between my country's currency and that of my trading partners.

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Answer 2

The domestic price, as opposed to the international price, at which a commodity trades within a nation.

What is Domestic price level?

• The cost of a certain commodity or service at the domestic pricing level in a given economy. In order to evaluate growing or decreasing prices, often known as inflation and deflation in economic terms, government organizations or national economists sometimes examine a range of price levels.
• The consumer price index is the most typical measure of domestic prices.
• This index is popular in many nations and gauges the costs of a variety of commodities that most economists consider essential for people to purchase in the economy.
• Price levels can also provide as a point in time snapshot of pricing, enabling comparisons between multiple time periods.

Hence, The domestic price, as opposed to the international price, at which a commodity trades within a nation.

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