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Economic - Coggle Diagram
Economic
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Exports
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a fall in the value of the pound means exported goods cost less for overseas customers= demand rises
Imports
a rise in the value of the pound= imports cost less= more profit can be made and prices can be reduced
a fall in the value of the pound= imports cost more so less profit is made or prices are increased .
fall in interest rates
uk becomes lesss atractive to investors-> foreighn invesrtors sell the pound to purchse other currencies = suppky of pound increases= exchange rates fall
Rise in interest
uk becomes more attractive location for foreignn investors-> purchase pound to invest in uk banks= demand for pount goes up = increased exchange rate
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