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6) Use the following table to answer the following questions: Exchange Rates on June 30, Exchange Rates on June 2010 30, 2009 Country Currency Symbol

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6) Use the following table to answer the following questions: Exchange Rates on June 30, Exchange Rates on June 2010 30, 2009 Country Currency Symbol Per $ Per Per Per S Per Per Switzerland Franc SFr 1.078 1.613 1.321 1.088 11.791 11.536 Eurozone Euro 0.816 1.221 . 0.713 1.174 . Japan Yen 88.49 132.39 108.39 96.49 158.9 135.34 Norway Krone NKT 16.503 9.7297.966 6.437 10.6 19.028 U.K. Pound - 0.819 0.607 - 0.852 U.S.A. U.S. Dollars - 1.496 1.225 - 1.647 1.403 a) Calculate the U.S. dollar-Swiss franc exchange rate, E$/franc, and the U.S. dollar-British pound exchange rate, E$/ as of June 30, 2010. b) What happened to the value of the U.S. dollar relative to the Swiss franc and the British pound between 2009 and 2010? Calculate the percentage change in the value of the U.S. dollar relative to each currency using the U.S. dollar- foreign currency exchange rates you calculated in part a. c) Calculate the Japanese yen-Norwegian krone exchange rate in 2010. 4) Suppose that the U.S. dollar has appreciated relative to the Chinese yuan and depreciated relative to the Mexican peso. Assume that the U.S. trades more with Mexico than with China. What has happened to the value of the dollar based on the effective exchange rate? How is your answer based on the relative importance of U.S. trade with China and Mexico? Explain

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