The pound appreciates, but a UK exporter has imported components priced in dollars. What is the most accurate conclusion?
The exporter must lose because exports become dearer
Cheaper imported components may partly offset weaker price competitiveness abroad
The exporter must gain because all costs fall
The effect is zero because exchange rates affect only consumers
21 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.