Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

AvtoVAZ of Russia's Kalina Export Pricing Analysis. AVAZ OAD, a leading auto manufacturer in Russia was launching a new automobile model in 2001, and is

image text in transcribed
AvtoVAZ of Russia's Kalina Export Pricing Analysis. AVAZ OAD, a leading auto manufacturer in Russia was launching a new automobile model in 2001, and is in the midst of completing a complete pricing analysis of the car for sale in Russia and export. The new car the Kalina, would be nitially priced Rubles 260 000 in Russia and exported SB 667 in US dollars at the current spot rate of Rubles 30 = $100 AutoVaz intends to raise the price domestically with the rate of Russian Inflation over time, but is worried about how that compares to the export price given US dollar inflation and the future exchange rate Use the datatable to answer the pricing analysis questions a. If the domestic price of the Kalina increases with the rate of inflation, what would be s price over the 2002 2006 period b. Assuming that the forecasts of US and Russian inflation prove accurate what would be the value of the rule over the coming years if its value versus the dollar followed purchasing power party? c. the export price of the Kaina were set using the purchasing power party forecast of the ruble dofar exchange rate, what would be the export price over the 2002-2006 period? d. How would the Kalina's export price evolve over time it followed Russian inflation and the exchange rate of the ruble versus the dollar remained relatively constant over this period of time? .. Vlad one of the newly hired pricing strategists, believes that prices of automobiles in both domestic and export markets will both increase with the rate of inflation, and that the ruble dollar exchange rate will remain fixed What would this imply or forecast for the future export price of the Kalina? 1. If you were AvtoVaz, what would you hope would happen to the ruble's value versus the dolar over time given your desire to export the Kaina? Now if you combined that "hope" with some assumptions about the competition other automobile sale prices in dollar markets over time-how might your strategy evolve? 9. So what did the Russian ruble end up doing over the 2001-2006 period? 1. If the domestic price of the Kalina increases with the rate of inflation what would be its price over 2002-2006 period? The domestic price of the Kalina in 2002 ts Rub Round to the nearest ruble) The domest price of the Kalina in 2003 is Ruble Round to the nearest ruble The domestic price of the Kalina in 2004 is Ruble (Round to the nearest ruble) The domestic price of the Kalina in 2005 is Ruble Round to the nearest rubl) her your answer in each of the answer boxes Type here to search O it d) ENG 11:09 AM 2020-06-23 AvtoVAZ of Russia's Kalina Export Pricing Analysis. AVAZ OAD, a leading auto manufacturer in Russia was launching a new automobile model in 2001, and is in the midst of completing a complete pricing analysis of the car for sale in Russia and export. The new car the Kalina, would be nitially priced Rubles 260 000 in Russia and exported SB 667 in US dollars at the current spot rate of Rubles 30 = $100 AutoVaz intends to raise the price domestically with the rate of Russian Inflation over time, but is worried about how that compares to the export price given US dollar inflation and the future exchange rate Use the datatable to answer the pricing analysis questions a. If the domestic price of the Kalina increases with the rate of inflation, what would be s price over the 2002 2006 period b. Assuming that the forecasts of US and Russian inflation prove accurate what would be the value of the rule over the coming years if its value versus the dollar followed purchasing power party? c. the export price of the Kaina were set using the purchasing power party forecast of the ruble dofar exchange rate, what would be the export price over the 2002-2006 period? d. How would the Kalina's export price evolve over time it followed Russian inflation and the exchange rate of the ruble versus the dollar remained relatively constant over this period of time? .. Vlad one of the newly hired pricing strategists, believes that prices of automobiles in both domestic and export markets will both increase with the rate of inflation, and that the ruble dollar exchange rate will remain fixed What would this imply or forecast for the future export price of the Kalina? 1. If you were AvtoVaz, what would you hope would happen to the ruble's value versus the dolar over time given your desire to export the Kaina? Now if you combined that "hope" with some assumptions about the competition other automobile sale prices in dollar markets over time-how might your strategy evolve? 9. So what did the Russian ruble end up doing over the 2001-2006 period? 1. If the domestic price of the Kalina increases with the rate of inflation what would be its price over 2002-2006 period? The domestic price of the Kalina in 2002 ts Rub Round to the nearest ruble) The domest price of the Kalina in 2003 is Ruble Round to the nearest ruble The domestic price of the Kalina in 2004 is Ruble (Round to the nearest ruble) The domestic price of the Kalina in 2005 is Ruble Round to the nearest rubl) her your answer in each of the answer boxes Type here to search O it d) ENG 11:09 AM 2020-06-23

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions