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During a shopping spree in China , C . Dundee has bought a Sony CD boom box ( with woofers and tweeters ) for CY
During a shopping spree in China C Dundee has bought a Sony CD boom box with woofers and tweeters for CY jade jewelry for CY and four custommade suits for CY The spot exchange rate is CYAUD
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 HKD paid for airfare and hotels during his trip?
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