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Help plss 3. Assume that the export price of a Nissan Xterra from Osaka, Japan, is 3,250,000. The exchange rate is 115.20/$. The forecast rate
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3. Assume that the export price of a Nissan Xterra from Osaka, Japan, is 3,250,000. The exchange rate is 115.20/$. The forecast rate of inflation in the United States is 2.2% per year and 0.0% per year in Japan. a. What is the export price of the Xterra at the beginning of the year expressed in US dollars? b. Assuming purchasing power parity holds, what should the exchange rate be at the end of the year? c. Assuming 100% pass-through of exchange rate changes, what should be the dollar price of an Xterra at the end of the year? d. Assuming 75% pass-through of exchange rate changes, what should be the dollar price of an Xterra at the end of the yearStep by Step Solution
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