Chapter 11, Problem 15SQ

Under a gold standard in which France defined one franc to be worth 1/50th of an ounce of gold and the U.S. defined one dollar to be worth 1/10th of an ounce of gold, then - one U.S. dollar would exchange for five French francs. - the French franc is worth only one-tenth as much as the dollar is worth. - one French franc would exchange for ten dollars. - the U.S. dollar is valued at one-fifth of the French franc.

Which of the following increases the demand for foreign exchange? a. Export of goods and services from a country b. Import of goods and services to a country c. Unilateral payments to the country d. Import of capital to a country

List two disadvantages Chile face by using foreign investment

View the data below for the exchange rate between the US dollar and the Japanese yen.   How many yen could you get per dollar at the earliest date shown on the chart? Explain. How many yen could you get per dollar at the most recent date shown on the chart? Explain. Has the dollar appreciated or depreciated in value over time? Explain.

Whether or not one likes a strong U.S. dollar depends on their perspective. For those who are looking to travel abroad, a strong dollar means they can get more for their money. On the other hand, for those who are looking to export goods, a strong dollar can make their products more expensive for foreign buyers. A strong dollar can have a significant impact on U.S. firms. It can make their products more expensive for foreign buyers, which can lead to a decrease in demand and a decrease in profits. Additionally, a strong dollar can make it more difficult for U.S. firms to compete with foreign firms, as their products may be more expensive. Finally, a strong dollar can also make it more difficult for U.S. firms to borrow money from foreign lenders, as the cost of borrowing may be higher. reply to discussion