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6.You are a supplier of water purifiers. You have two potential buyers that both want to buy 2,000 water purifiers. The buyer in San Francisco,

6.You are a supplier of water purifiers. You have two potential buyers that both want to buy 2,000 water purifiers. The buyer in San Francisco, California offers you $5,000 for them and the buyer in Manchester, England offers you 3,800. The nominal exchange rate is $1 for 0.72.

a)What is the real exchange rate?

b)Who should you sell your 2,000 water purifiers to and why?

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