Question
The Impact of a changing exchange rate Britain and France two fictional countries and major trading partners. In France, the spot rate for buying Britain's
The Impact of a changing exchange rate
Britain and France two fictional countries and major trading partners. In France, the spot rate for buying Britain's currency (the Pound) increases. What is the effect on the following (again, to be clear e is from the perspective of France):
1. Cost for a firm in France repaying debt in Britain's currency
(increase/decrease)
2. Quantity of exports from France into Britain
(increase/decrease)
3.Cost of travel from Britain to France
(increase/decrease/no change)
4.Cost of future France FDI into Britain
(increase/decrease)
5.Value of current Britain FDI already in France
(increase/decrease)
6.Inflation rate in Britain
(increase/decrease)
7.The Current Account of France
(increase/decrease)
8. The Price level in Britain
(increase/decrease)
9.The British Stock Market
(increase/decrease)
10.Cost of repaying suppliers for Land Rover (a British car producer) buying from French suppliers
(increase/decrease)
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