Exchange+rates

=Quotas and tariffs=

Quotas
These are set by governments and limit quantities that can be imported of a physical good.

Tariffs
These are taxes levied by the government on goods imported to a country.

Why do we have quotas and tariffs?
To protect domestic businesses from cheaper imports.

Quotas are more direct in their impact as they physically limit the amount of goods that enter a country. It could be a measurement of weight, quanitities or value, usually in a given period, i.e. a year. Quotas can be filled shortly after the opening. This can lead to exporters competing to sell as quickly as possible into a foreign market, before the quota is complete.

=Exchange rates=

In 2009 the value of the British Pound (GBP) fell against the Euro. It was more expensive for British people to buy goods when they visited Europe on business or on holiday. However, ASOS, one of Britain's best known internet-based retailers, found that its sales to Europe boomed. Explain why British tourists lost out, while ASOS benefited from the fall in value of the pound.