4.2.5 Global Competitiveness Flashcards Preview

Business Theme 4 > 4.2.5 Global Competitiveness > Flashcards

Flashcards in 4.2.5 Global Competitiveness Deck (4)
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1
Q

What does SPICED mean for exchange rates?

A

Strong
Pound
Imports
Cheaper
Exports
Dearer

2
Q

What does WPIDEC mean in terms of exchange rates?

A

Weak
Pound
Imports
Dearer
Exports
Cheaper

3
Q

Name 4 ways exchange rates impact a business.

A

1)Price of exports in international markets
2)Cost of goods bough from overseas
3)Revenues and profits earned overseas
4)Converting cash recipes from customers overseas

4
Q

What does the significance of fluctuating exchange rates depend on?

A

•Elasticity of demand
•Economic growth
•Use of fixed contracts