A basket produced in the U.S is sold in the U.S for P_US=47.55. The costs to export are the following per unit: Transport to American trans corp =$2 Tariff paid to Friendland=47 Francs Other Fees to Friendland=65 Francs The exchange rate as of now is E _(F$)=23.5.

Compute the price of the basketball in Friendland.

Assume the exchange rate changes to E _($F)=0.015. What can you say about the two currencies values with respect to one another?

Compute the depreciation and appreciation rates.

Compute the new price of the basketball in Friendland.