Suppose in an open economy, two countries—Brazil and Argentina—have a fixed exchange rate (under Bretton Woods Agreement). If the inflation rate in Brazil is higher than Argentina’s, what is the...

Suppose in an open economy, two countries—Brazil and Argentina—have a fixed exchange rate (under Bretton Woods Agreement). If the inflation rate in Brazil is higher than Argentina’s, what is the likely impact of the higher inflation on the trade balance between two countries?