33. Matthew Martin is studying towards an MBA from CUHK Business School (China) and currently working as Equity Strategy Analyst Intern for Houlihan Lokey.

Matthew works with the senior Quantitative Risk Analyst and joins to the meetings of the Risk & Quantitative Research team that plays a vital role in the Firm's investment process, building a deeply rooted culture of efficient risk management and factful performance attribution.

Matthew Martin is preparing for a presentation about the exchange rates (FX) and the economy in front of several midsize corporate CEOs whose firms have significant amounts of exports and imports. After researching several databases, Matthew found the following table about the exports and imports to illustrate the U.S. trade balance.

Can you help Matthew to explain if the following trade balance numbers stand in the long run and all other variables do not change, what will happen to the U.S. dollar value against the U.K. (British Pound) (appreciate or depreciate)?

Options:

British Pound will gain value against the U.S. dollar.

The U.S. dollar will appreciate against the U.K. (British Pound).

The U.S. dollar will depreciate against the U.K. (British Pound).

The exchange rate between the U.S. and the U.K. will stay the same.