IB skill practice

Analyse exchange rates and trade effects

Economics SL global economy skill with original exam-style diagram, data-response, and evaluation seeds.

Paper 1, Paper 2 5 marks Difficulty 3

Evaluate exchange-rate change

A tourism extract in a Sydney exchange-rate article says the domestic currency falls sharply. Explain one benefit and one limitation for the economy. Use the labelled diagram, data, or extract evidence before writing the answer. Enter the answer and choose the interpretation that best matches the global-economy evidence.

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