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Suppose that a US-based company is buying Chinese go company is buying Chinese goods. Current exchange rate for Chinese Yuan is 0.15 USD. The price

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Suppose that a US-based company is buying Chinese go company is buying Chinese goods. Current exchange rate for Chinese Yuan is 0.15 USD. The price of goods is $12,000 per unit. buying 800 units per year with a fixed contract for the next two years Chinese Yuan appreciate to 0.2 USD in the next year. The preciate 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 ce of goods is $12,000 per unit. The company is contract for the next two years. Suppose that

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