(a) On a chart, show what has happened to the UK pound (sterling) against the Euro between the 1st June 2016 and the 1st June 2018. Using economic theory (a diagram) explain the reasons for any significant changes in the sterling exchange rate.
(b) Explain the impact of this change in the value of sterling against the Euro on a UK airline carrier which travels to European destinations and their tickets are priced in euros.
-use artices or books.No newspaper and website
In Q1
-change the diagram between Euro and pounds( hand made the diagram )Don’t copy in the website
-Cause of weak pound interest rate(talk most),export and import, inflation(talk less)
Q2
-Take out $dollor(Euro and pound only)
-the demand for UK country to European country
-Cause other effect but not the destination
Sample Solution
