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During a shopping spree in China , C . Dundee has bought a Sony CD boom box ( with woofers and tweeters ) for C
During a shopping spree in China C Dundee has bought a Sony CD boom box with woofers and tweeters for jade jewelry for and four custommade suits for The spot exchange rate is
a If PPP held, what should the same boom box, jewelry, and suits cost in Australia?
b Suppose Mr Dundee is unexpectedly stopped at customs as he arrives in Melbourne, and must pay import duties of percent. If the same boom box, jewelry, and suits cost AUD AUD and AUD in Australia respectively, was his shopping spree worth at least the CY paid for airfare and hotels during his trip?
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