If a German firm's cost of goods sold in UK is much greater than its sales in UK, the appreciation of the Pound has a ____ impact on the firm's negative; interest expenses positive; gross profit negative; gross profit
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- In 1999, the euro was trading at $0.90 per euro. Ifthe euro is now trading at $1.18 per euro, what is thepercentage change in the euro’s value? Is this an appreciation or depreciation?1. Spot Rate GBP 0.616124 = 1 USD. It is expected that GBP may depreciate by 2% after 15 days. What will be the new exchange rate after fifteen days? 2. Spot rate OMR 0.061666 = 1 CNY = Chinese Yuan Renminbi. It is expected that CNY may depreciate by 3% after one month. What will be new exchange rate after depreciation?. What is the dollar value of the invoices in exercise 13 if the dollar:a. depreciates 10 percent against the Australian dollarto b. appreciates 10 percent against the British poundc. depreciates 10 percent against the Indian rupeed. appreciates 20 percent against the Japanese yene. depreciates 100 percent against the euro
- Question 1 Appreciation vs. Depreciation: You are given the following information regarding the nominal exchange rate between the USD and the Indian rupee (INR): Wednesday: INR 65 per USD 1 Thursday: INR 78 per USD 1 Friday: INR 74 per USD 1 Is it possible for any two currencies (e.g., the Canadian dollar-CAD and the Egyptian pound-EGP) to simultaneously appreciate relative to one another? Explain. The average price for a 16” pepperoni pizza in the U.S. is USD 10. The average price for a similar pizza in Ukraine is UAH 28. The nominal exchange rate is UAH 28 to USD 1. From the U.S. perspective, what is the real exchange rate for pizza between the U.S. and Ukraine? In other words, how many 16” pepperoni pizzas can you afford in Ukraine for what it costs to buy a similar pizza in the U.S.? (Show all work for full credit.)Analyze the impact of appreciation and depreciation of US Dollar upon net exports of USA?Can you help me with this problem I have. Appreciation vs. Depreciation: You are given the following information regarding the nominal exchange rate between the USD and the Indian rupee (INR): Wednesday: INR 65 per USD 1 Thursday: INR 78 per USD 1 Friday: INR 74 per USD 1 What happened to the value of the USD (versus the INR) from Wednesday to Friday? Briefly explain. What happened to the value of the USD (versus the INR) from Thursday to Friday? Briefly explain. What happened to the value of the INR (versus the USD) from Wednesday to Thursday? Briefly explain.
- Can you help me with this problem I have. Appreciation vs. Depreciation: You are given the following information regarding the nominal exchange rate between the USD and the Indian rupee (INR): Wednesday: INR 65 per USD 1 Thursday: INR 78 per USD 1 Friday: INR 74 per USD 1 What happened to the value of the USD (versus the INR) from Wednesday to Friday? Briefly explain. What happened to the value of the USD (versus the INR) from Thursday to Friday? Briefly explain. What happened to the value of the INR (versus the USD) from Wednesday to Thursday? Briefly explain. Is it possible for any two currencies (e.g., the Canadian dollar-CAD and the Egyptian pound-EGP) to simultaneously appreciate relative to one another? Explain. The average price for a 16” pepperoni pizza in the U.S. is USD 10. The average price for a similar pizza in Ukraine is UAH 28. The nominal exchange rate is UAH 28 to USD 1. From the U.S. perspective, what is the real exchange rate for pizza between the U.S. and…The ECU as a basket of currencies. What is the percentage/weight of the ECU's total value accounted by the Spanish peseta? Refer to Exhibit 3.4 in the text. Would you get a different result if you valued the ECU in Japanese yen instead of the U.S. dollar? Would you expect this weight to change if the ECU depreciates by 10 percent against the U.S. dollar? For reference (image included)1. Depreciation and Appreciation of currency. a. Please thoroughly and completely explain how the US dollar might depreciate relative to another currency, and how that would impact U.S. GDP. b.Please thoroughly and completely explain how the US dollar might appreciate relative to another currency, and how that would impact U.S. GDP.
- Which of the following will cause a real depreciation?a reduction in the exchange rate of foreign currency for domestic currency, Ean increase in the foreign price of goods, P*a decrease in the domestic price of goods, Pall of the abovenone of the aboveAssume that the export price of a Toyota Corolla from Osaka, Japan is ¥4,200,000. The exchange rate is ¥109.60/$. The forecast rate of inflation in the United States is 2.5% per year and is 1.5% per year in Japan. Use this data to answer the following questions on exchange rate passthrough. What was the export price for the Corolla at the beginning of the year expressed in the U.S. Dollars? Assuming purchasing power parity holds, what should the exchange rate be at the end of the year? Assuming a 65% pass-through of the exchange rate, what will be the dollar price of a Corolla at the end of the year?wouldn't the answer be $184 since you also have to subtract net transfers abroad - debit loss of $10. (GDP+net income earned by foreign investment - investment income paid to foreigners + net transfers) $200+$22-$28-$10 = $184
