Depreciation (Currency)
Decrease in currency value relative to another.
Formula
New Export Price = Original Price × (1 / New Exchange Rate)
Real World
After the pound depreciated post-Brexit, Jaguar Land Rover found its cars became cheaper for US buyers paying in dollars, boosting overseas sales volumes despite no change in the sticker price in pounds.
Exam Focus
Use a numerical example in your answer — show how a weaker pound changes an export price in a foreign currency to earn method marks.
How well did you know this?