Unit 2: The effect of the exchange rate on imports and exports

A great little clip from the BBC showing the effect of the exchange rate on imports and exports

http://news.bbc.co.uk/1/hi/world/europe/7668400.stm

a) What is the effect of the appreciating euro on the Irish republic's BoP curerent account?
b) What is the effect of the appreciating euro on the Irish republic's home producers?
c) Using an AD/AS diagram, explain the effect of the appreciating euro on the Irish republic's macroeconomic performance