Faron has experienced a 25% increase in electric vehicle prices due to rising inflation. As a trade analyst, you are tasked with evaluating the impact of this inflation on Faron's export levels. Which of the following statements best captures the likely effect of rising inflation on Faron's international trade?

Rising inflation often leads to higher prices for goods, including electric vehicles, which can make them less competitive in international markets. For Faron, a 25% increase in vehicle prices means that buyers in other countries might choose cheaper alternatives instead. This could lead to a decrease in export levels, as other manufacturers may offer similar products at lower prices. For example, if Faron's electric vehicle is now significantly more expensive than those from other countries, potential customers might decide to buy from competitors, reducing Faron's sales abroad. Therefore, the rise in inflation could negatively impact Faron's ability to sell electric vehicles internationally.