The impact of exchange rates

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1. What is an effect of the fall in the value of pound?

  • Fall in export sales
  • Leads to increased costs if imports are of raw material used in production
  • Rise in exchange rate
  • Foreign buyers give up more euro to get the same amount of pounds
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2. What is an effect of the rise in the value of pound?

  • Qualities such as leadership are shown by entrepreneurs
  • Export sales rise
  • UK companies buying from abroad will find prices cheaper.
  • Decrease import to UK

3. What does export lead to?

  • Import to UK likely to decrease
  • Money flowing into UK
  • Money flowing out UK
  • Increase in interest rates

4. What does trade abroad mean?

  • Decline in economic activity
  • Someone who has interest in business
  • To import and export things such as raw materials.
  • Increase in rate of interest

5. 'how much money has to be given up of one currency to buy another currency' is the definition of...

  • Stakeholder
  • Exchange rates
  • Recession
  • Interest rates

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