The number of American tourists travelling to Britain is increasing.

Sites to Visit for More Information:

1. British Tourist Authority
2. English Tourism Council
3. Report from National Statistics

Questions:

1. What effect does an increase in American tourists have on UK exports and the UK balance of payments?
2. What effect does an increase in UK tourists in North America have on UK imports and the UK balance of payments?
3. Do you think there is an export multiplier at work in the UK economy? If your answer is yes, then explain its effect on UK GDP since September 11, 2001.
4. How responsive do you think tourism is to changes in the UK-US exchange rate?

Chapters: 4, 22, 23, 33

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