Prices for Bags and Shoes in the USA (in $) and in Indonesia (in Rupiah). Tas Sepatu
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Prices for Bags and Shoes in the USA (in $) and in Indonesia (in Rupiah).
Tas Sepatu
USA $ 10 $ 20
Indonesia Rp 120.000Rp 180.000
c. Based on table 2 above, what commodity imports should be carried out by the USA and Indonesia if the dollar exchange rate ($) is IDR 10,000; in the amount of Rp. 13,000; Rp 9,500 and Rp 8,500; Provide arguments for your answer.
d. If the potential for shoe production in Indonesia is relatively greater than that of bags and currently the dollar exchange rate is Rp. 9,000, which is more profitable for Indonesian trade between rupiah appreciation and rupiah depreciation? Give an argument.
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Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon
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