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Australian businesses export to Canada - HSC - SSCE Business Studies - Question 18 - 2018 - Paper 1
Question 18
Australian businesses export to Canada. What would happen if the value of the Australian dollar increased compared to the Canadian dollar? A. There would be no eff... show full transcript
Worked Solution & Example Answer:Australian businesses export to Canada - HSC - SSCE Business Studies - Question 18 - 2018 - Paper 1
Step 1
What would happen if the value of the Australian dollar increased compared to the Canadian dollar?
Answer
If the value of the Australian dollar increases compared to the Canadian dollar, this means that Australian goods will become more expensive for Canadian businesses. As a result, it may lead to a decrease in the demand for Australian products in Canada. Therefore, the correct answer is:
D. Australian products would become more expensive for Canadian businesses.