Question
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
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.
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Global Marketing
Authors: Svend Hollensen
8th Edition
1292251808, 9781292251806
