Economics A Level: Why can High Exchange Rates make British Beef more Expensive?
[Say £1=$2 — £1=$4 and that Beef is £1]

Question

Why can High Exchange Rates make British Beef more Expensive?
[Say £1=$2 —> £1=$4 and that Beef is £1]

go kys · Accepted Answer

-To buy the Beef, Americans must Buy the Pound, so thus, the Beef is $2. 
-And if the Exchange Rate goes up, £1 = $4, then Americans must spend more $$ to get British beef.
-Crucial to Remember that the Beef in Britain hasn’t Changed. This Cost to Americans is because the £ is Stronger

Economics A Level

Why can High Exchange Rates make British Beef more Expensive? [Say £1=$2 —> £1=$4 and that Beef is £1]

-To buy the Beef, Americans must Buy the Pound, so thus, the Beef is $2. -And if the Exchange Rate goes up, £1 = $4, then Americans must spend more $$ to get British beef. -Crucial to Remember that the Beef in Britain hasn’t Changed. This Cost to Americans is because the £ is Stronger

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