Exchange Rates Country (currency) China (yuan) Argentina (peso) Germany (euro) Britain (pound) US dollar ($) / per currency 0.15 0.01 1.2 |1.3 A computer manufactured in the US costs $500. Using the exchange rates listed in Table below, what would the bicycle cost in each of the following countries? 4. China 5. Argentina 6. Germany 7. Britain

Exchange Rates Country (currency) China (yuan) Argentina (peso) Germany (euro) Britain (pound) US dollar ($) / per currency 0.15 0.01 1.2 |1.3 A computer manufactured in the US costs $500. Using the exchange rates listed in Table below, what would the bicycle cost in each of the following countries? 4. China 5. Argentina 6. Germany 7. Britain

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 5QR

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WHAT WILL HAPPEN IF A COUNTRY DOESNT HAVE ENOUGH PRODUCTION BUT MORE EXPORTING THINGS IN OTHER COUNTRIES
determine the purchasing power of the country China for aconsumer good that they would buy from their Canadian trading partner. Also, calculate whatCanada’s purchasing power is with a country that they import from. See example below on Coca Colaand Mexico. Purchasing Power Example In the example of the picture, if a Canadian company operating in Mexico were to pay its Mexican employeesthe equivalent of $10/hour CAD (or 100 pesos/hour according to our fictional exchange rate), theMexican employee would actually enjoy greater purchasing power (the ability to acquire 20 colasversus only 10 colas) than his/her Canadian counterparts.
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