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Exchange rates and Business

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Exchange rates and Business

  • This topic has 5 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • November 24, 2014 at 2:51 pm #212685
    Lilit
    Member
    • Topics: 8
    • Replies: 11
    • ☆

    Dear F9 tutor,
    Kindly ask You, to explain with numerical examples this relationship. I have tried to remeber it, but I think I will be confused during exam, if I do not understand the logic.

    A lower exchange rate A higher exchange rate
    -Domestic goods are cheaper in – Domestic goods are more expensive in
    foreign markets so demand for foreign markets so demand for exports falls.
    exports increases. -Foreign goods are cheaper so demand for
    -Foreign goods are more expensive so imports rises.
    demand for imports falls.

    Thank you in advance.
    Best regards. Lilit.

    November 24, 2014 at 7:53 pm #212839
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54682
    • ☆☆☆☆☆

    I don’t see how I can give you numerical examples (and you would not be asked for any).

    November 24, 2014 at 11:50 pm #212932
    Lilit
    Member
    • Topics: 8
    • Replies: 11
    • ☆

    OK, Sir, I will try to understand the logic.

    November 25, 2014 at 9:07 am #213046
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54682
    • ☆☆☆☆☆

    I would not spend too much time on it – there is unlikely to be much (if anything) on this in the exam.

    November 25, 2014 at 2:32 pm #213137
    Lilit
    Member
    • Topics: 8
    • Replies: 11
    • ☆

    Thanks once again, Sir.

    November 26, 2014 at 9:08 am #213318
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54682
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
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