Unit 3: The effects of changing exchange rates

Britons travelling to Europe face soaring costs as the euro continues to strengthen against the pound according to this BBC clip. Travelling to other countries may be more beneficial

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7330000/newsid_7331500?redirect=7331546.stm&news=1&nbwm=1&bbram=1&bbwm=1&nbram=1&asb=1 >

a) Explain the effect of the rising/falling pound on patterns of UK destinations overseas
b) What does this tell you about the demand for these destinations?
c) What effect would these changes in the value of the pound have on the trade in services for the UK?