A UK bicycle importer must pay an overseas supplier an invoice of $54,000. Table 1 shows a change in the exchange rate.
| Exchange rate | Value |
|---|---|
| Before | $1.35 per £1 |
| After | $1.20 per £1 |
Using Table 1, calculate the increase in the invoice's cost in pounds after the exchange-rate change.
48 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.