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4 International trade and the global economy

4 International trade and the global economy

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Question 22

The pound depreciates by 8%. A UK manufacturer exports half its output but imports most of its components. Which assessment is best?

[1]
A

Profit must rise because exports become cheaper abroad

B

Profit must fall because imported components cost more

C

The effect on profit depends on changes in export demand and the size of the increase in imported input costs

D

There is no effect unless the firm changes its sterling price

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4 International trade and the global economy Questions

  1. GCSE
  2. /Economics
  3. /4 International trade and the global economy

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