Explanation : Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. It makes exports less competitive in the world market because of price rise. Eventually this may show through in reduced export orders, lower profits and fewer jobs, and also in a worsening of a country's trade balance. A fall in exports can trigger negative multiplier and accelerator effects on national income and employment. However, in the long run, it leads to depreciation of currency that restores the competitiveness of exports. ....Read more