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Solve clearly Consider the United States and the countries it trades: Canada, Mexico, China and Japan. Assumes that these are the only four countries with

Solve clearly

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Consider the United States and the countries it trades: Canada, Mexico, China and Japan. Assumes that these are the only four countries with which the US trades. The Trade shares and exchanges rates for these four countries are as follows: Country Share of per FX in per FX in (Currency) Trade 2009 2010 Canada 38% 0.94 0.98 (Dollar) Mexico (Peso) 28% 0.06 0.08 China (Yuan) 11% 0.12 0.15 Japan (Yen) 23% 0.01 0.02 . Compute the percentage change from 2009 to 2010 in the four U.S bilateral exchange rates (as US per unit of foreign exchange) in the table provided. . Use the trade share and weights to compute percentage change in the nominal effective exchange rate for the US between 2009 and 2010 (in the US dollar per foreign currency package). . Based on your answer to question b, what happened to the value of US dollar against this basket between 2009 and 2010? How does this compare with the change in the value of US dollar relative to Chinese Yuan? Explain your

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