Price escalation could lead to the sales of exported goods being confined to a limited segment of wealthy, price-insensitive customers.

Question

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Price escalation, which refers to the increase in the final selling price of goods when they are exported, can make products more expensive in the foreign market. Consequently, only a limited segment of wealthy, price-insensitive customers might be able to afford these goods, limiting the broader market accessibility.

Price Escalation Could Lead to the Sales of Exported Goods