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On June 23, 2016, the United Kingdom voted to leave the European Union. The white line shows the U.K.’s main equity ind…
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On June 23, 2016, the United Kingdom voted to leave the European Union. The white line shows the U.K.’s main equity index, the FTSE 100, from the start of 2016 to the date on which the U.K. government notified the European Union of its intent to leave. The orange line shows the number of dollars it takes to buy one pound sterling. The United Kingdom is a net importer, meaning the value of imports exceeds the value of exports. What can be reasonably surmised from the chart about large U.K. corporations?
Their CEOs probably voted to remain in the E.U.
Their CEOs probably voted to leave the EU
They are probably heavy exporters.
They are probably heavy importers.
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2023-03-15T10:00:11+00:00
2023-03-15T10:00:11+00:00 1 Answer
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Please briefly explain why you feel this answer should be reported .
Based on the given information and chart, it can be reasonably surmised that:
They are probably heavy importers.
This is because the United Kingdom is a net importer, which means the value of imports exceeds the value of exports. As a result, large U.K. corporations are likely to be heavily dependent on imports, and any fluctuations in the value of the pound sterling (as shown by the orange line) could have a significant impact on their profitability.
There is no information in the given chart that would allow us to surmise anything about the voting preferences of the CEOs of these corporations with respect to the Brexit referendum.