A UK ceramics studio charges a South Korean retailer £6,000 for a shipment of dinnerware. The studio keeps its price in pounds unchanged, but the pound appreciates against the won. What is most likely to happen to the retailer’s payment?
It must give up fewer won to obtain the £6,000
It gives up the same number of won as before
It must give up more won to obtain the £6,000
It must give up more pounds to obtain the won
53 exam-style questions on OCR GCSE Economics 4.3 Exchange rates, covering 4.3.1 Draw how exchange rates are determined, 4.3.2 Analyse how exchange rates are determined, 4.3.3 Calculate currency conversion, 4.3.4 Analyse exchange rate data, and 4.3.5 Effect of exchange rate changes. Each one has a worked solution and a mark scheme showing where the marks go.