Suppose a recent issue of the Financial Times of London states in an article that inflation in the U.S. is running at 6% while inflation in the U.K. is running at 4%. Many U.S. and U.K. firms sell their respective products not only in their domestic economies but also to each other.
Further, often for these firms a significant portion of their profits come from sales of their respective products to each other.
Is the article good news or bad news for U.S. firms? Why? Is the article good news or bad news for U.K. firms? Why?