2.2.5 Net trade (X - M) Flashcards
(14 cards)
What are the influences on exports?
- Real income increasing abroad
- UK £ appreciates
- UK £ depreciates
- World economy booms
- World economy slows
- Protectionism increases
- Protectionism decreases
What are the influences on imports?
- UK real income increases
- UK £ appreciates
- UK £ depreciates
- Protectionism increases
- Protectionism decreases
What is the influence of real income increasing abroad on exports?
- Customers overseas purchase more UK products and therefore exports increase.
What is the influence of the UK £ appreciating on exports?
- Exports more expensive for customers overseas and therefore exports decrease.
What is the influence of the UK £ depreciating on exports?
- Exports less expensive for customers overseas and therefore exports increase.
What is the influence of the world economy booming on exports?
- Increased demand for UK exports.
What is the influence of the world economy slowing on exports?
- Decreased demand for UK exports.
What is the influence of protectionism increasing on exports?
- Depends on retaliation measures from other countries.
What is the influence of protectionism decreasing on exports?
- Exports are likely to increase.
What is the effect of UK real income increasing on imports?
- Consumers purchase more.
What is the influence of the UK £ appreciating on imports?
- UK consumers’ money goes further abroad and therefore imports increase.
What is the influence of the UK £ depreciating on imports?
- UK consumers’ money is worth less abroad and therefore imports decrease.
What is the influence of protectionism increasing on imports?
- Decreased demand for imports as they are more expensive.
What is the influence of protectionism decreasing on imports?
- Increased demand for imports as they are less expensive.
