If a country experiences high inflation, what happens to its imports and exports?

When a country experiences high inflation, the purchasing power of its currency decreases, meaning that consumers and businesses need to spend more to buy the same goods and services as before. As a result, imported goods become more expensive because they are priced in foreign currencies, which remain stable relative to the domestic currency.

Simultaneously, the price of the country's exports tends to decrease from the perspective of foreign buyers. This is because, with high inflation, prices of goods produced in the inflationary country rise, making those goods more expensive for foreign customers. However, if the domestic currency weakens significantly due to inflation, it may also make exports appear cheaper to foreign markets, potentially stimulating demand for those exports.

This dynamic leads to a situation where imports become more expensive and exports become cheaper when viewed from the standpoint of foreign buyers. Hence, the assertion that with high inflation, imports become more expensive and exports become cheaper captures the economic implications accurately.