The exchange rate is one of the most important determinants of a country's trade level. Inflation in country A is higher than in country B. Because the exchange rate is fixed, exporting goods to nation A benefits country B. Similarly, importing items from nation B is beneficial to country A. Exporting commodities to nation B, on the other hand, would be costly for country A. As a result, compared to country B, country A will have a trade imbalance since it will import more items than it exports. Nation B will buy fewer commodities from country A than country A sells. As a result, country B has a trade surplus.