The UK feeds the world – Trade revision

Don’t think less of me, but I got this article from the Sun newspaper which shows exports of British food and non-alcoholic drinks soared by 20% to a record £9.3bn last year. Sales of cheddar are up 20% to £8.9 million in the US whilst Japan has a high demand for our jam, tea and shortbread. Another article from the Times website shows we are even selling cakes to the French, with the UK cake and pudding manufacturer Gü building up a market worth £5 million in less than two years. As usual I have written some GCSE style questions to go along with this for revision.

1. Explain two factors that could affect demand for UK goods abroad. (4 marks)

2. Explain what is meant by a current account deficit. (2 marks)

3. Discuss the costs and benefits of weakening the pound to improve the UK’s current account deficit. (4 marks)