The table below shows the value of a country's representative currency against a basket of other currencies, in index-number form.
| Year | Exchange rate index, 2019=1002019 = 1002019=100 |
|---|---|
| 2018 | 96 |
| 2019 | 100 |
| 2020 | 103 |
| 2021 | 108 |
All other things being equal, the most likely consequence of the changes in the external value of the currency shown in the table for the period 2018 to 2021 is that
domestic inflationary pressures eased.
exporting firms experienced an increase in international price competitiveness.
the price of imported raw materials increased.
the nation's balance of trade in goods and services improved.
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.