Economic implications of rising cost of production in China The economies of most countries are interdependent. Countries mainly export what is not produced locally and export what they produce in surpluses. When the world prices are lower compared to domestic prices, it becomes more economical for consumers to import goods even if they are produced locally. The latter also gives domestic producers incentive to improve on quality of the products they produce CITATION Noe10 l 1033 (Merino, 2010)…