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Economics

Forums › ACCA Forums › ACCA BT Business and Technology Forums › Economics

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by HazE.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
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  • July 25, 2015 at 9:51 am #261848
    Swati
    Participant
    • Topics: 9
    • Replies: 7
    • ☆

    Sir I have a doubt regarding this question from the mock exam.
    Q. Mant co is manufacturing co in country Westland & it neither importing nor exporting. If the currency of Westland strengthens with respect to other currencies, what is the likely effect on Mant co’s sales?

    July 25, 2015 at 7:20 pm #261973
    HazE
    Participant
    • Topics: 11
    • Replies: 84
    • ☆☆

    I also do not like the economics bit of this course and on times struggle to answer questions. Here is my take on this question.
    Since the country does not do any trading so the price of imports and exports is out of question. So, i would say then that it depends what state the economy of country is in. If the country is going through economic boom, meaning there is economic growth and low unemployment, then the strong currency will be beneficial as it will reduce the inflationary pressure. And if the country is going through recession or depression then the strong currency will only add to the problems since the domestic demand will fall further.
    Thats all i can think of, maybe John can add to it
    When are you planning to sit F1? I am sitting it in the first week of August

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