Assume that a product sells for $100 in the United States.

a. If the exchange rate between British pounds and U.S. dollars is $2 per pound, what would the price of the product be in the United Kingdom?

b. If the exchange rate between Mexican pesos and U.S. dollars is 125 pesos per dollar, what would the price of the product be in Mexico?

c. In which direction would the price of a $100 U.S. product change in a foreign country if Americans’ tastes for foreign products increased?

d. In which direction would the price of a $100 U.S. product change in a foreign country if incomes in the foreign country fell?

e. In which direction would the price of a $100 U.S. product change in a foreign country if interest rates in the United States fell relative to interest rates in other countries?