Global financial crisis impacts UK imports from developing countries due to exchange rate volatility.
Exchange rate volatility affects UK imports from Brazil, China, and South Africa. The global financial crisis also impacts this relationship. The study used data from 1991 to 2011 and found that exchange rate volatility influences trade and the recent crisis has a significant effect on UK imports. The third country effect is important for all countries studied. This research has implications for trade policies to manage risks and ensure stable trade flows in different economic situations.