Practice mode Budget Deficits And The Trade Balance

If Europeans develop a stronger taste for UK-built Hondas, what happens to the pound and UK net exports?

Correct answer D. Appreciate, but the total value of UK net export stays the same

Explanation

Higher demand for UK exports raises demand for pounds, so the pound appreciates; the stronger pound reduces other net exports, leaving total net exports unchanged.

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Answer checked 11 October 2026 How we write and check questions

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If Europeans develop a stronger taste for UK-built Hondas, what happens to the pound and UK net exports?

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If Europeans develop a stronger taste for UK-built Hondas, what happens to the pound and UK net exports?

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