What is an easy way to remember the effects of the exchange rate on imports and exports?

These two simple acronyms will help you remember the effects of changes in the exchange rate on imports and exports:

Strong
Pound
Imports
Cheap
Exports
Dear

The acronym "SPICED" is a helpful way to remember that a stronger currency will lead to a decrease in the country's exports as they are more expensive through a stronger currency, and an increase in imports.

Weak
Pound
Imports
Dear
Exports
Cheap

The acronym "WPIDEC" is a helpful way to remember that a weak pound (or whatever currency) will lead to an increase in exports as they are now cheaper, relatively speaking, and a decrease in imports.

Answered by Jake C. Economics tutor

76208 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Describe with a real world example, price elasticity of demand


Analyse 2 causes of shifts in the demand curve and the consequence for the consumer.


Explain why a 'strong' pound might reduce the sales of steel in the UK.


Explain one possible effect on the equilibrium market price of an increase in production costs for firms. (2 marks)


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences