Currency Exchange
Trading one currency for another at market rate.
Formula
Exchange Rate = Units of Foreign Currency per £1
Real World
When the pound fell sharply against the dollar after the 2016 Brexit vote, Dyson's UK-manufactured exports became cheaper for US buyers, boosting international competitiveness.
Exam Focus
Always state the direction of the exchange rate change AND whether the business is an exporter or importer to access higher marks.
How well did you know this?