Trade and exchange rates
| English | 中文 | Pinyin |
|---|---|---|
| exchange rate/eksˈtʃeɪndʒ reɪt/ | 汇率 | huì lǜ |
| tariff/ˈtærɪf/ | 关税 | guān shuì |
A decision you can investigate
- A student buys a book priced at 20 dollars. The exchange rate 汇率 changes from 7 to 8 yuan per dollar.
- The same foreign price now costs more in yuan.
Build the explanation
- Globalisation increases connections through trade, investment and other flows. Trade can widen choice and allow specialisation.
- Tariffs tax imports; quotas limit quantities. Both may protect producers while raising costs for buyers.
Match the terms to their precise meanings.
Use these definitions in the particular context of Trade and exchange rates.
Work through the evidence
- The book cost is 20 × 7 = 140 yuan before, and 20 × 8 = 160 yuan after.
- The yuan has depreciated against the dollar under this quotation; imported goods become more expensive in yuan.
Which change has occurred in the book example?
The book cost is 20 × 7 = 140 yuan before, and 20 × 8 = 160 yuan after. The yuan has depreciated against the dollar under this quotation; imported goods become more expensive in yuan.
Test the limits
- Always state the quotation before calling a currency stronger.
- Export competitiveness also depends on imported inputs, demand, quality and contracts, so depreciation is not a guaranteed solution.
Which caution belongs to this particular task?
Always state the quotation before calling a currency stronger. Export competitiveness also depends on imported inputs, demand, quality and contracts, so depreciation is not a guaranteed solution.
The explanation in this lesson makes a conditional claim; relevant context and evidence still matter.
Export competitiveness also depends on imported inputs, demand, quality and contracts, so depreciation is not a guaranteed solution.
Apply and explain your answer
- Which change has occurred in the book example?
- The yuan depreciates and the yuan price of the dollar-priced book rises.
Choose the two statements supported by this lesson.
The concept and worked evidence support these claims; the stated limits rule out the universal shortcut.
Use the terms precisely
- exchange rate: The price of one currency in terms of another.
- tariff 关税: A tax on imported goods.
The book cost is 20 × 7 = 140 yuan before, and 20 × 8 = 160 yuan after. The yuan has depreciated against the dollar under this quotation; imported goods become more expensive in yuan.
Always state the quotation before calling a currency stronger. Export competitiveness also depends on imported inputs, demand, quality and contracts, so depreciation is not a guaranteed solution.
Globalisation increases connections through trade, investment and other flows. Trade can widen choice and allow specialisation.