The document discusses exchange rates and their effect on exports and imports. It provides the following key points: 1) The exchange rate is the value of a currency measured against a foreign currency, and it varies over time, reflecting the strength of an economy. 2) A falling exchange rate increases the competitiveness of exports by making them less expensive in foreign markets, which can lead to increased demand. It also makes imports more expensive. 3) Between 2000-2006, the value of the British pound fell against the US dollar, which would have made UK exports cheaper and more attractive in US markets, potentially boosting British exports.

1. xchange Rat Meaning Effect of falling rate Trend Tasks Click on a shape

6. Go back Drop in exchange rate Reduce price of exports Increase demand for exports Increase demand for local factors of production Increase employment Increase local demand Increase sales Profit

7. Exchange Rate to the 0 0.5 1 1.5 2 2.5 90 92 94 96 98 00 02 04 06 Exchange rate Year Go back

11. Impact of Exchange Rate Go back