globalisation Flashcards
what is meant by the tern exchange rate? [1]
the price of 1 currency expressed in terms of another currency
what does the acronym SPICED spell out?
Strong
Pound
Imports
Cheaper
Exports
Dearer (decline)
what does the acronym WPIDEC spell out?
Weak
Pound makes
Imports
Dearer but
Exports
Cheaper
what will happen if the value of the pound increases? (spiced)[1]
more foreign currency can be purchased for the same number of pounds
what does a stronger pound do? (spiced) [2]
makes it cheaper to pay for imports. but exports will seem more expensive to overseas customers
what will happen if the pound is weak against other currencies? (wpidec)[1]
less foreign currency can be purchased for the same number of pounds
UK firms that ______ ___ materials will have to spend ____ pounds to obtain the ____ foreign ________, so they will pay ____ of those raw ________. [3]
UK firms that imports raw materials will have to spend more pounds to obtain the same foreign currency, so they will pay more of those raw materials.
what are the external factors affecting businesses? [7]
Political
Economic
Social
Technological
Legal
Environmental
Competition
what does the term depreciation mean? [1]
losing value
