Question
Gondor and Rohan two fictional countries and major trading partners. In Rohan, the spot rate for buying Gondors currency increases. What is the effect on
Gondor and Rohan two fictional countries and major trading partners. In Rohan, the spot rate for buying Gondors currency increases. What is the effect on the following (again, to be clear e is from the Rohan perspective): Cost of a Tuition bill for a student from Rohan that must study at a Gondor university (increase/decrease/no change) The Financial Account of Gondor Price level in Gondor Cost of future Rohan FDI into Gondor (increase/decrease/no change) Value of current Gondor FDI already in Rohan (increase/decrease/no change) Cost for a Rohan firm in repaying debt in Gondors currency (increase/decrease/no change) The stock price of Gondor firms with a large percentage of its sales in Rohan (increase/decrease/no change)
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