A UK manufacturer orders 480 sensors from an overseas supplier at €37.50 each. Before the order is paid, the supplier raises its price to €39.00 per sensor and the exchange rate changes from £1 = €1.25 to £1 = €1.20.
Ignoring other costs, calculate the increase in the total sterling cost of the order.
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.