1.A) A firm in the US is buying clothing from a firm in Germany and has to pay EUR 10 million for the clothes. How many USD does this cost the US firm? 1.B) An Argentinian firm is selling computer parts to a US firm for ARS10 million, how many US dollars does the US firm pay? 1.C) A firm in Spain wants to submit a bid to a firm in the US to sell machine parts to the US firm. The firm in Spain is generally willing to sell the parts for EUR 1 million but the US firm wants bids in US dollars. What bid does the Spanish firm submit? 1.D) A Canadian firm is selling automobile parts to a firm in Japan. The Canadian firm sells the parts for CAD $10 million. How many JPY does that cost the Japanese firm if they go through the US $?

7) Suppose the following exchange rate bid and offer (ask) quotes exist for the following currencies GBP Currency Bid CAD Offer 1.22 1.38 MXN 1.29 1.35 JPY 19.5 20.2 EUR 107.5 108.3 CNY 1.09 1.24 ARS 7.24 7.86 BRL 17.4 18.1 IDR 4.15 4.38 140.3 142.5 (GBP is the UK Pound, CAD is the Canadian dollar, MXN = Mexican Peso, JPY = Japanese Yen, EUR= Euro, CNY = Chinese Yuan Renminbi, ARS = Argentine Peso, BRL = Brazilian Real, IDR = Indian Rupiah)