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Business Studies IGCSEPDF 197
212 pagesrevision 46931
PDF 197
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Currency
Depreciation
Currency
Appreciation
Gain competitiveness
(exports cheaper)
Lose competitiveness
(exports cost more)
Imports more
expensive
Imports cheaper
(input costs fall)
Exam Tip: Exchange rate effects depend on price elasticity — if customers are not
sensitive to price changes, exports/imports may not change much.
Summary Points
● Globalisation increases trade, investment, and interdependence between
countries.
● Protectionism restricts trade through barriers like tariffs and quotas.
● Multinational companies (MNCs) benefit from operating in multiple countries but
can exploit workers or the environment.
● Exchange rate fluctuations affect how expensive exports and imports become.
● A successful economy must balance global opportunities with domestic
protection and sustainability.
Good for exporters,
bad for importers
Good for importers,
bad for exporters
Questions: