Increases in transportation costs and time can lead to a decrease in trade due to higher expenses, impacting global trade flows.
Increases in transportation time and shipping costs can lead to a decrease in trade due to higher expenses involved in moving goods. For example, if shipping goods becomes more costly and time-consuming, businesses may choose to trade less, impacting overall trade volumes.
Moreover, when transportation costs rise, companies might opt for more local or regional sourcing to avoid high shipping expenses, which can further reduce international trade.
Therefore, it is essential to consider how changes in transportation costs and time can directly impact global trade flows.
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