Question
Between 1980 and 1995, the / $ exchange rate moved from 226.63 against $1.00 to 93.96 against $1.00. During this same period (15 years), the
Between 1980 and 1995, the / $ exchange rate moved from 226.63 against $1.00 to 93.96 against $1.00. During this same period (15 years), the consumer price index in Japan rose from 91.0 to 119.2 and the US consumer price index rose from82.4 to 152.4.
Required:
Based on the purchasing power parity (PPP) principle, what would the / $ exchange rate have been in 1995? Show your workings
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International Business The Challenges Of Globalization
Authors: John J. Wild, Kenneth L. Wild
9th Edition
0134729226, 978-0134729220
