How does a significant increase in inflation, such as a 25% rise in electric vehicle prices, typically affect a country's export levels in the context of international trade?

When inflation rises significantly, like if electric vehicle prices go up by 25%, it can make those vehicles more expensive for other countries to buy. This increase in price can lead to a decrease in demand for exports because foreign buyers might look for cheaper alternatives. For example, if a country known for producing electric vehicles raises its prices due to inflation, customers in other countries might decide to buy vehicles from a different country where prices are lower. As a result, the country's export levels may drop, which can hurt its economy since fewer goods are being sold abroad. Overall, high inflation can make a country's products less competitive on the global market, affecting trade negatively.