Economics Chart Quiz 3

Here is chart 3 in our occasional chart quiz series. This chart focuses on the annual trade balance for a key industry in the UK. Look at the data below - it shows the annual balance of trade i.e. the net value of exports minus imports. As you can see there have been some big swings in the balance of trade over the years and in recent times we have moved from having a trade surplus to a trade deficit. Which industry do you think this chart refers to?

Here is the answer to the previous chart quiz (number 2)

Chart quiz 2 shows the monthly level of car production in the UK. Notice the dominance of cars produced for export - the vast majority of new passenger car vehicles made in the UK are destined to be sold in overseas markets. And the rise of car export production is good news not just for the industry but also for those regions where production, investment and employment are rising.

In April 2012 Nissan announced that it will create more than 1,000 jobs after the company announced it is to build a new hatchback at its Sunderland plant. Soon the Sunderland plant’s workforce will stand at a record 6,225, supporting annual production of more than half a million models and providing demand for hundreds of component supply businesses throughout the UK and especially in the North East.

Car exports have been boosted by a fall (depreciation) in the value of sterling against the Euro and other currencies.