Unit 4: Essay Question on Euro

As the Euro has not necessarily come up as a direct question and the fact that it has been in the news for the last year or so, it is a possibility for the June examination. Therefore, why not try this question for homework:

a) The value of the dollar fell from $1 = 6.8 Yuan in 2010 to $1 = 6.3 Yuan in 2013. Examine the factors which might explain this depreciation of the dollar against the Yuan. (NB: Yuan is the Chinese Currency)

(20 Marks)

b) The UK & Latvia have very different opinions on whether or not to join the Euro Zone. What would be the potential economic benefits/drawbacks if either country joined?

(30 Marks)