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10 marks 6. Diego Forlan, a Italian manufacturer, ships an order to a buyer in Jordan. The purchase price is 425,000. Jordan imposes a 13%
10 marks 6. Diego Forlan, a Italian manufacturer, ships an order to a buyer in Jordan. The purchase price is 425,000. Jordan imposes a 13% import duty on all products purchased from the European Union. The Jordanian importer then re-exports the product to a Saudi Arabian importer, but only after imposing their own resale fee of 28%. Given the following spot exchange rates, what is the total cost to the Saudi Arabian importer in Saudi Arabian riyal, and what is the U.S. dollar equivalent of that price? Currency Crossrate Jordanian dinar (JD) per euro () Jordanian dinar (JD) per U.S. dollar ($) Saudi Arabian riyal (SRI) per U.S. dollar (S) Spot Rate JD 0.96 JD 0.711/5 SRI 3.751/5
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