Understanding Economic Content

Exchange rate is the price of buying a foreign currency. It tells you how much of a foreign currency you will get for every UK pound or any other currency.
1. Impact of a fall in exchange rate is good for british firms as it means foreigners will buy more of our goods than countries who would be charging more due to the rise in exchange rate for their currecny.
  1. This means exports would be increasing meaning more staff is needed but it makes imports more expensive so supply wil fall.
Exports - Goods leaving the country. Imports - Goods coming in to the contry.
Commodities are the raw materials such as copper, oil, wood and cotton. They are all used in the production of other goods that are commonly used.
Businesses or Firms can absorb or pass on increases in the cost of commodities or production.
SPICED is Strong Pound Imports Cheap Exports Dear

Resource summary

	Created by Beth Thornton almost 10 years ago