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suppose that a u.s. based company is buying chinese goods. current exchange rate for chinese yuan is 0.15 USD. the price of goods is 12,000
suppose that a u.s. based company is buying chinese goods. current exchange rate for chinese yuan is 0.15 USD. the price of goods is 12,000 per unit. the company is buying 800 units per year with a fixed contract for the next two years. suppose that chinese yuan appreciates to 0.2 USD in the next year. the US importer will respond to this by lowering the demand to 500 units in the third year. plot the j curve.
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