The U.S. price of corn is $100 per ton, and the exchange rate between the U.S. dollar and the Japanese yen is ¥120 = $1.00. Calculate the international price of U.S. corn for Japan. If the exchange rate changes to ¥145 = $1.00, calculate the new international corn price for Japan.

The U.S. price of corn is $100 per ton, and the exchange rate between the U.S. dollar and the Japanese yen is ¥120 = $1.00. Calculate the international price of U.S. corn for Japan. If the exchange rate changes to ¥145 = $1.00, calculate the new international corn price for Japan.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter21: International Trade And Finance

Section21.6: Exchange Rates

Problem 1GE

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Question

The U.S. price of corn is $100 per ton, and the exchange rate between the U.S. dollar and the Japanese yen is ¥120 = $1.00.
1. Calculate the international price of U.S. corn for Japan.
2. If the exchange rate changes to ¥145 = $1.00, calculate the new international corn price for Japan.

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