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2.4 International trade and the global economy

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Question 10

The pound moves from €1.14 to €1.20. A UK bakery has agreed to pay a Greek supplier a fixed price of €2,400 for olive oil.

Which immediate effect is most likely for the bakery?

[1]
A

The bakery needs more pounds to pay the €2,400 invoice, so its import cost rises.

B

The bakery's pound cost stays unchanged because the €2,400 price is fixed.

C

The bakery needs fewer pounds to pay the €2,400 invoice, so its import cost falls.

D

The bakery pays the Greek supplier fewer euros, so the supplier receives less.

Markscheme

2.4 International trade and the global economy Questions

  1. GCSE
  2. /Economics
  3. /2.4 International trade and the global economy

118 exam-style questions on AQA GCSE Economics 2.4 International trade and the global economy, covering 2.4.1a The importance of trade, 2.4.1b Advantages of trade and interdependence, 2.4.1c UK exports and imports, 2.4.2a How exchange rates are determined, 2.4.2b Effects of exchange rate changes, 2.4.3a Free-trade and its arguments, 2.4.3b Free-trade agreements such as the EU, 2.4.4a Features and growth of globalisation, 2.4.4b Benefits and drawbacks of globalisation, and 2.4.4c Moral, ethical and sustainability considerations. Each one has a worked solution and a mark scheme showing where the marks go.

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