Uk Trade

Question 1

Define exchange rates

Answer 1

The value of one currency against another

Question 2

There are two types of currency?

Answer 2

Fixed - eg. Euro, fixed against other euro countries

Floating - eg. Pound, varies on a daily basis

Question 3

Barriers to trade: what may prevent trade occurring?

Answer 3

• tax
• legislations
• sanctions
• illegal goods
• trade agreements
• protectionist measures: measures by the government to protect domestic industries from foreign competition

Question 4

Factors that determine price of products?

Answer 4

Costs ie. Labour, materials, transport 
Brand and quality 
Location 
Tax/legislation/import duty 
Exchange rates