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The exchange rate between U.S. Dollar and Argentinian Peso is $1 = 101 Pesos. Inflation rate in USA is 6.2% and in Argentina is 42.2%.

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The exchange rate between U.S. Dollar and Argentinian Peso is $1 = 101 Pesos. Inflation rate in USA is 6.2% and in Argentina is 42.2%. U.S. trade with Argentina totaled an estimated $23.3 billion in 2019. Exports were $15.7 billion; imports were $7.5 billion. The U.S. trade surplus with Argentina was $8.2 billion in 2019. Given this, explain how the "inflation differential" between the two countries will affect trade. Will USA see an increase in trade surplus? For the talhar nres AS

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