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Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134421315
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 20, Problem 2.2P
(a)
To determine
Identify the
(b)
To determine
Identify the
(c)
To determine
The role of demand and supply in the determination of exchange rate.
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Students have asked these similar questions
The table below shows the labor hours required to produce two goods in two
countries. You might think of the units as dozens of loaves and cases of wine.
Country
bread
60
80
wine
30
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(a) Which country has the comparative advantage in each good? Explain briefly.
(b) If the two countries were both to benefit from trade, what's the possible range of
the exchange rate, expressed as units of wine per unit of bread? Explain briefly.
1.24 Study the table below and answer the question that follows.
Afghanistan
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c) 1 carpet = 0,04 aircraft.
d) 1 aircraft = 22 carpets.
The exchange rate between the euro (€) and the US dollar ($) is $1,20 per euro. If an American tourist in Paris
purchases a good valued at 60 euros, then in his own currency this would cost:
a) $50
b) $72
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d) $720
You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia. Analyze the entry country (Australia) based on the following;
What are the major exports, dollar value, and trends? What are the major imports, dollar value, and trends? Does the entry country have a surplus or deficit for trade? What are the exchange rates? Are there any restrictions on currency trade?
You should also consider sweat shops, skilled labor, employee unrest, political and social activists and labor unions in your analysis.
Chapter 20 Solutions
Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
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