[This is part of the series: The Complete Guide To Economics 101.]
What is the world price in economics?
The World Price is the price of a good, or service, in the world market.
Of course, this implies that there is both a world price and a domestic price.
The difference in the world price and a domestic price usually consists of transportation costs, storage costs, tariffs, quotas, and taxes.
In the USA, this is most evident in the sugar market.
Due to market distortions, the USA price of sugar is approximately twice the world price of sugar.
