Analyse two opportunities to MAA of the depreciation of country G's currency against most major currencies (lines 11–14).

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2022). The mark or mark type is shown in brackets.

1. [1] Definition of exchange rate – price of one currency in terms of another.
2. [1] Meaning of currency depreciation / weak currency – fall in price of a currency in terms of another currency
3. [1] Generic opportunities: exports will be cheaper / price competitive to foreign customers
4. [1] Generic opportunities: fewer domestic residents will holiday abroad
5. [1] Currency depreciation means entrance fees and other facilities, such as safari drives will be better value for foreign visitors
6. [1] Increase in foreign tourists
7. [1] Donations from other countries, such as charities, will have greater spending power in local currency than previously
8. [1] More tourists may be attracted by better value of services in country G
9. [1] Possible to sell more extras, such as souvenirs
10. [1] Possible future export opportunities for dyed textile items
11. [1] Impact on demand and therefore sales and profits
12. [1] Impact of more foreign visitors to country G, in terms of revenue
13. [1] Impact on development and future opportunities such as selling souvenirs abroad to increase sales
14. [1] Dollar value of donations from foreign charities will increase as foreign currency will purchase more dollars. Therefore, there could be an increase in the value of donations enabling MAA to undertake more of its plans.