Question
Question 1 a) Below table compare the price of laser engraver machine in Malaysia and Vietnam. Price in Malaysian Ringgit (MYR) Price in Vietnamese Dong
Question 1
a) Below table compare the price of laser engraver machine in Malaysia and Vietnam.
| Price in Malaysian Ringgit (MYR) | Price in Vietnamese Dong (VND) | Actual Exchange Rate |
| 1,500 | 8,000,000 | MYR / VND = 5,407.62 |
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- Determine if the laser engraver machine being priced equally. (4 marks)
- Is the laser engraver machine in Vietnam undervalued or overvalued? (2 marks)
- Calculate the implied Purchasing Power Parity (PPP) rate of exchange based on the two product prices. (4 marks)
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- Based on the implied PPP, calculate the percentage of the laser engraver machine in Vietnam being undervalued or overvalued. (4 marks)
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The Millionaire Next Door The Surprising Secrets Of Americas Wealthy
Authors: Thomas J. Stanley, William D. Danko
1st Edition
1589795474, 978-1589795471
