Suppose the nominal exchange rate is 100 yen per dollar. Further, suppose the price of a baseball glove in Canada is $50 and the price of a baseball glove in Japan is 7500 yen. What is the real exchange rate between Japan and Canada in terms of baseball gloves?

----Is there a profit opportunity that could be exploited with arbitrage due to different price of gloves in Japan and Canada? Where would people buy and where would they sell gloves? (linked to ii above)