One of South Africa's significant trading partners is the European Union (EU). The EU is a major destination for South African exports and a source of imports, contributing significantly to South Africa's international trade. 

 

2.1 Explain how fluctuations of the EUR/ZAR exchange rates would have an impact on South Africa. Justify whether these impacts would have been different if EUR/ZAR exchange rate was fixed. (20)

 

 2.2 Describe the concept of a national autonomy and explain the relevance of this concept to South Africa, given its openness to trade with the EU. (15)