Question
In our pretend world there are two countries - Japan and Indonesia - that are engaged in trade.A Japanese firm Honda sells motorcycles in Indonesia.Each
In our pretend world there are two countries - Japan and Indonesia - that are engaged in trade.A Japanese firm Honda sells motorcycles in Indonesia.Each motorcycle sells for 70 million Indonesia rupiah per unit.In Japan, each motorcycle costs 550,000 Yen to produce.Assume that the firm has 100,000 motorcycles to sell each year.How much money (in Japanese Yen) would the firm make (or lose) on the sale at the following exchange rates:
Rate 1: 132 Rupiah per Japanese Yen
Profit (or loss):_____(YEN)
Rate 2:0.007 Japanese Yen per Rupiah
Profit (or loss):______(YEN)
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