A UK charity has set aside sterling to make a one-off payment of NOK 480,000 for a conservation project in Norway. The exchange rate changes during the planning period.
| Exchange rate | Value |
|---|---|
| At first | NOK 12.00 per £1 |
| Later | NOK 10.00 per £1 |
Calculate how much more sterling the charity needs to set aside after the exchange-rate change.
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.