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Japan is expected to have inflation of 2% for the coming year, while the US is expected to have deflation of 3%. The spot exchange
Japan is expected to have inflation of 2% for the coming year, while the US is expected to have deflation of 3%. The spot exchange rate is yen 95/$. A Toyota made in Japan costs yen 4.75 million.
a.) What is the best estimate of the spot rate 1-year from today? Explain your answer.
b.) What will be the dollar cost of a car imported from Japan one year from today?
a.) What is the best estimate of the spot rate 1-year from today? Explain your answer.
b.) What will be the dollar cost of a car imported from Japan one year from today?
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a The best estimate of the spot rate 1year from today can be calculated using the relative purchasin...
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
