Economics- Edexcel 2.2.5
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| exports | show 🗑
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| show | exports
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| show | injection into the circular flow of income
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| show | relative prices of exports in world markets/external value of exchange rate/non-price demand factors/strength of AD in key export markets/level of protectionism
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| show | a country with a relatively high rate of inflation will have lower exports due to a loss of cost and price competitiveness in international markets
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| what is the relative price of exports in world markets affected by? | show 🗑
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| why does external value of exchange rate impact demand for a nation’s exports? | show 🗑
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| show | specific to factors which can be design, branding, product quality, after-sales service
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| show | state of the world economy can lead to global recession which hits export sales for many countries, if key export markets are booming then there is a higher demand for exports
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| why does level of protectionism impact demand for a nation’s exports? | show 🗑
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| show | X>M so aggregate demand increases
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| show | M>X so aggregate demand falls
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| show | X=M so external trade has a neutral effect on AD
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jessharris
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