Answered: 1. What is the real exchange rates for…

1. What is the real exchange rates for each country? 2. Which countries have a premium value of the dollar? 3. Which countries discount value of dollar?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter20: The Global Economy

Section: Chapter Questions

Problem 8AA

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Question

1. What is the real exchange rates for each country?
2. Which countries have a premium value of the dollar?
3. Which countries discount value of dollar?
4. Note Germany and Belgium use the exact same currency, why would real exchange rates be different?
5. You are in the business school, so here is a business problem. You can import and export goods from any of these countries. Which countries would it be better you to buy the good and sell it to you neighbor at original price? This is a thought question.
6. What would you expect to happen to these profit opportunities in the long-run?

Country
Switzerland
Price in dollars
$
Australia $
Belgium
$
Singapore $
Finland
$
Germany $
South Korea $
Kuwait
Vietnam
Russia
$
Pakistan
$
United States $
$
$
184.74
127.85
125.36
121.23
119.11
115.47
112.39
102.33
94.31
80.54
28.96
113.45
X-Rate $1 =
0.89
1.57
0.94
1.37
0.94
0.94
1344
0.31
24550
93.45
279.5
1 This would be foreign currency

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