All other things being equal, a rise in the external value of a country's currency is most likely to
increase the rate of domestic inflation.
improve the international competitiveness of domestic exporting firms.
reduce the domestic price of imported raw materials.
increase the volume of exports.
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.