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Via Afrika Publishers Unit 1 Foreign exchange The phrase foreign exchange refers to the exchange of one currency for another, or the conversion of one currency into another currency. Foreign exchange also refers to the global market where currencies are traded virtually around-the-clock. The term foreign exchange is usually abbreviated as "forex".
1. Gross domestic product (GDP) and its benefits to our economy The GDP is a measure of a country’s national income. GDP is a measure of all the goods and services produced domestically, usually in a period of one calendar year. The components included are consumer spending,
investment made by industry, value of exports minus value of imports, and government spending. Our economy is diversified with key economic sectors contributing to the GDP,
including • Mining
• Agriculture and fisheries
• vehicle manufacturing
•
food processing • Clothing and textiles
• Telecommunication
• Energy
• Financial
and business services • Tourism
• Transportation
• Wholesale and retail trade. If there are more goods and services produced in a
year than in the previous year, we say there has been growth in the GDP. If GDP is increasing the economy is in good health and the nation is progressing and standards of living are improving.
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