What is an easy way to remember the effects of the exchange rate on imports and exports?

These two simple acronyms will help you remember the effects of changes in the exchange rate on imports and exports:

Strong
Pound
Imports
Cheap
Exports
Dear

The acronym "SPICED" is a helpful way to remember that a stronger currency will lead to a decrease in the country's exports as they are more expensive through a stronger currency, and an increase in imports.

Weak
Pound
Imports
Dear
Exports
Cheap

The acronym "WPIDEC" is a helpful way to remember that a weak pound (or whatever currency) will lead to an increase in exports as they are now cheaper, relatively speaking, and a decrease in imports.

JC
Answered by Jake C. Economics tutor

81014 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What conditions allow a firm to sell the same product at different prices?


Explain why the demand for food is relatively price inelastic.


Explain why income tax in the UK is an example of progressive taxation.


Define what market failure is and identify an example of market failure, explaining fully why it is a relevant example.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences