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2.6 The international economy (A-level only)

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Question 75

A German luxury electric vehicle manufacturer purchases its battery cells from a supplier in South Korea, paying in South Korean won, and subsequently exports its completed vehicles to dealerships in Australia, receiving payments in Australian dollars.

It follows from the above that the German manufacturer's profit margin will benefit most when the euro is

A

weak against the South Korean won, and strong against the Australian dollar.

B

strong against the South Korean won, and weak against the Australian dollar.

C

strong against the South Korean won, and strong against the Australian dollar.

D

weak against the South Korean won, and weak against the Australian dollar.

Markscheme

2.6 The international economy (A-level only) Questions

  1. A Level
  2. /Economics
  3. /2.6 The international economy (A-level only)

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.

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