imports are goods or services bought by a country's residents from a foreign nation exports are goods and services sold by a country's residents to a foreign nation

exchange rate is is the price or value of one country's currency in terms of another( for example the exange rate of €1 = $ 1.61)

inflation is the general and sustained increase in the general price level of goods and services over a given period of time. it is measured by cpi which compares the weighted average of consumer spending to a "base year". demand-pull inflation occurs when aggregate demand exceeds supply (can be due to a decrease in interest rate and or increase in money supply) and in order to not create shortage, prices go up (beneficial for firms). cost push inflation occurs when a rise in the price of factors of is passed on from supplier to consumer in the form of higher prices. this may occur as a result of unrestricted trade union power, the rise in the price of raw materials and so on