Since his last shipment in April the exchange rate has changed to £1.00 = £1.50 - Edexcel - GCSE Business - Question 16 - 2018 - Paper 1

Due to the change in the exchange rate, Georgio would have to pay more in local currency to import the same amount of cheese. This increase in costs would likely lead to a situation where he is unable to maintain his selling prices, thereby reducing his profit margins.

Therefore, the most appropriate single effect of this change is:

C Able to charge lower prices

This is because, in competitive markets, if costs increase and Georgio wishes to retain customers, he may be forced to lower his selling prices to maintain sales volume, which would directly affect his profit.