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

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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.

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