Photo AI
Study the foreign exchange rate table below and answer the questions that follow - NSC Tourism - Question 3 - 2020 - Paper 1
Question 3
Study the foreign exchange rate table below and answer the questions that follow. FOREIGN EXCHANGE RATES Rand per foreign currency unit CURRENCY CODE BANK SELLING... show full transcript
Worked Solution & Example Answer:Study the foreign exchange rate table below and answer the questions that follow - NSC Tourism - Question 3 - 2020 - Paper 1
Step 1
3.1.1 A South African tourist returns from the United Kingdom with £2 500. Calculate how much the South African will receive in rand.
Answer
To calculate the amount the South African tourist will receive in rand, we can use the bank buying rate for the pound sterling (GBP). The exchange rate is 1 GBP = 18.29 ZAR (South African Rand).
The calculation is as follows:
a) Amount in GBP = £2,500 b) Exchange rate = 18.29 ZAR/GBP
To convert GBP to ZAR:
Thus,
Therefore, the South African tourist will receive 45,725 rand.
Step 2
3.1.2 You have a friend who is studying in the United States of America. It is your friend’s birthday and you would like to transfer R1 800 into his account as a gift. Calculate how much your friend will receive in US dollars.
Answer
To calculate how many US dollars your friend will receive from R1,800, we will use the bank selling rate for the US dollar (USD). The exchange rate is 1 USD = 14.73 ZAR.
The calculation is as follows:
a) Amount in ZAR = R1,800 b) Exchange rate = 14.73 ZAR/USD
To convert ZAR to USD:
ext{Amount in USD} = rac{ ext{Amount in ZAR}}{ ext{Exchange Rate}}Thus,
ext{Amount in USD} = rac{1800}{14.73} ext{ USD} ext{ (approximately)} = 122.0 ext{ USD}Therefore, your friend will receive approximately 122.0 US dollars.
Step 3
3.2 It is important for sustainable tourism to find a balance between the impact on the environment and the economic benefit to the tourism industry. Write a paragraph to explain how a strong rand would be able to achieve this balance.
Answer
A strong rand promotes sustainable tourism by ensuring that businesses can enhance their facilities and practices. This improvement allows them to be more competitive and environmentally friendly, contributing positively to the local ecosystem.
Additionally, a stronger currency reduces the environmental impact by decreasing the number of international tourists, which lessens pollution from travel. It encourages local tourism, which can be more environmentally friendly and promotes domestic spending. Finally, a strong rand enhances job creation, as it leads to a surge in investor confidence, resulting in more disposable income among South Africans to spend on local tourism products. Overall, balancing economic growth with environmental preservation protects natural resources while fostering sustainable tourism practices.