edd1.0
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Registered: 17th Sep 08
Location: kettering
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hello
ive got a uni assignment and need to explain importing and exporting from the UK if the pound is weak
as far as i can make out exporting you would get a better deal , and importing would be worse off ?
does anyone know if this is right ?
thanks
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LeeM
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Registered: 26th Sep 05
Location: Liverpool
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if the pound is weak you get less if your import currency is dollars. my understanding
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Robbo
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Registered: 6th Aug 02
Location: London
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Simple way is to think about how much money you'd make at certain rates:
i.e., you buy from a customer in France 1000 units for total €100k
The exch rate is £1:€2 therefore you pay £50k
Next month, same transaction but the pund has weakened and is now worth £1:€1... you now pay £100k... twice as much for the same goods
a weak currency = good for exporting, bad for importing
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Toby
Premium Member
Registered: 29th Nov 05
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How much detail to you need to go into.
I got a D in economics at AS so no a few bits but dropped it as it's to hard
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nibnob21
Premium Member
Registered: 16th May 10
Location: South Derbyshire
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quote:
Originally posted by Toby
How much detail to you need to go into.
I got a D in economics at AS so no a few bits but dropped it as it's to hard
Reminds of this 
http://www.metacafe.com/watch/an-4_zO2YtYuhbbbY/ali_g_in_da_house_2002_opening_the_safe_with_human_chain/
MX5 Project Thread
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Jamie Walby
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Registered: 15th Nov 04
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quote:
Originally posted by Robbo
Simple way is to think about how much money you'd make at certain rates:
i.e., you buy from a customer in France 1000 units for total €100k
The exch rate is £1:€2 therefore you pay £50k
Next month, same transaction but the pund has weakened and is now worth £1:€1... you now pay £100k... twice as much for the same goods
a weak currency = good for exporting, bad for importing
Now he probably just needs to turn that into 20000 words and he has his answer
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John
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Registered: 30th Jun 03
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How can you get to uni to do any subject without being able to answer that question?
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Fro
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Registered: 20th Jun 06
Location: Rainham, Essex Drives: A3 2.0TDi Sport
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http://www.youtube.com/watch?v=NV4xo_rF-oo
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emicen
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Registered: 26th Jul 10
Location: Glasgow
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quote:
Originally posted by edd1.0
hello
ive got a uni assignment and need to explain importing and exporting from the UK if the pound is weak
as far as i can make out exporting you would get a better deal , and importing would be worse off ?
does anyone know if this is right ?
thanks
Importing you get more for your money.
Exporting it makes no difference to how good a deal YOU get, the buyer abroad gets more for their money therefore its an easier sale as its a better deal for them.
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Toby
Premium Member
Registered: 29th Nov 05
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There is scope to bring the bank of England into it. They control interest rates to increase/decrease spending in the economy depending which in turn effects the euro vs pound as we are then importing or exporting more depending on interest rates and the spending in the UK. Guess you will find a more accurate answer on google and will explain my results at college
[Edited on 26-04-2012 by Toby]
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edd1.0
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Registered: 17th Sep 08
Location: kettering
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thanks this helped alot , its part of an international business module , so no detail was needed as its only 100 words of the assignment. I thought that was the correct way round its just hard trying to figure it out yourself because i didn't know what currency the UK would use when they exported thats when it made no sense.
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