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Unregistered
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#1
Report 17 years ago
#1
I know this is flawed, but I just can't tell where abouts...

"An economic downturn in American means that the Pound will become much stronger against the Dollar, and therefore means that exporting will become dearer."

"If the exchange rate was $2:£1, and Shaftons were exporting carriage seats that coost them £50, they will be selling them onto America for £100. However, now that the collar has become weaker and the ratio is now $3:£1 - thhey are now selling the seats on for $150."

Thanks in advance..
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Koloth
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#2
Report 17 years ago
#2
Originally posted by Unregistered
"An economic downturn in American means that the Pound will become much stronger against the Dollar, and therefore means that exporting will become dearer."
An economic downturn in America doesn't always mean that the dollar will lose its value.
If the pound was to become stronger than the dollar then the following would happen:
  • Exports from America would be cheaper.
  • Imports to America would be more expensive.
  • Exports from the UK would be more expensive
  • Imports to the UK from America would be cheaper.


Originally posted by Unregistered
"If the exchange rate was $2:£1, and Shaftons were exporting carriage seats that cost them £50, they will be selling them onto America for £100. However, now that the dollar has become weaker and the ratio is now $3:£1 - thhey are now selling the seats on for $150."
If the exchange rate was $2:£1 then selling carriage seats to America at £100 would be $200.

If the exchange rate was $3:£1 then selling carriage sears to America at £100 would be $300.

If Shaftons were selling the seats at $150 to America at an exchange rate of $3:£1 then they are selling the seats at £50.

Originally posted by Unregistered
Thanks in advance..
It would be better if you thank people after as then I know you have read it and it has helped you. Otherise I could feel that I'm not helping anyone and therefore wasting my time. Anyway I hope this helps but it looks like the first passage is flawed.
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Unregistered
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Report 17 years ago
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thanks, that helped.
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