Flashcards in Exchange Rates Deck (9)
Exchange rate definition
The value of a currency in terms of another
Strengthening exchange rate
This is when currency increases in value
Can buy more of a foreign currency
Weakening exchange rate
A currency decreases in value
Can buy less of a foreign currency
Money leaves the UK
Money enters the UK
What does a weakening pound mean for toms toys?
They would have to give up more £ to buy stock from the EU
Increase their costs
What could toms toys do if the pound becomes weaker?
Import more from China as it is strengthening against the yuan