Learning objective

Examine how changes in exchange rates, including depreciation and appreciation, can influence businesses that import and export goods, affecting aspects like pricing, competitiveness, and profitability, while noting that exchange rate calculations will not be included in assessments.

Read the explanation, check the common trap, then practise with flashcards and questions.

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Exam focus

Read the explanation.
Check key terms.
Practise with linked questions.

Cambridge IGCSE Business StudiesExternal influences on business activity

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Quick explanation

Examine how changes in exchange rates, including depreciation and appreciation, can influence businesses that import and export goods, affecting aspects like pricing, competitiveness, and profitability, while noting that exchange rate calculations will not be included in assessments

This point belongs to Business and the international economy, especially Business and the international economy outcomes.
You need to be able to examine how changes in exchange rates, including depreciation and appreciation, can influence businesses that import and export goods, affecting aspects like pricing, competitiveness, and profitability, while noting that exchange rate calculations will not be included in assessments.
The key ideas to know are Explain, Identify, and Outline.
Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.

Key concepts

ExplainIdentifyOutline

Why it matters

This objective helps connect Business and the international economy outcomes to exam-style questions, flashcards, and revision notes for Business and the international economy.

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