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 2

Explain depreciation effects

A local Australian development-policy briefing reports that the Australian dollar depreciates against trading partners’ currencies. Explain one likely export and import effect. 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.

Worked practice: economic evidence and answer

Identify the economic evidence first, then state the result and interpretation.