1.24 Study the table below and answer the question that follows. Afghanistan US 1.25 Carpets 100 500 Fighter aircraft 4 25 An appropriate international exchange ratio that would allow mutually advantageous trade to take place would be: a) 1 aircraft = 25 carpets. b) 1 aircraft = 20 carpets. c) 1 carpet = 0,04 aircraft. d) 1 aircraft = 22 carpets. The exchange rate between the euro (€) and the US dollar ($) is $1,20 per euro. If an American tourist in Paris purchases a good valued at 60 euros, then in his own currency this would cost: a) $50 b) $72 c) $48 d) $720
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- Scroll down to "U.S. Trade in Goods and Services by Selected Countries and Areas, 1999 - Present" and download those spreadsheets. https://www.bea.gov/data/intl-trade-investment/international-trade-goods-and-services Using Table 1, to which three nations (not areas or regions) did the U.S. export the highest dollar value of goods and services in 2021? Using Table 1, to which three nations (not areas or regions) did the U.S. export the highest dollar value of goods and services in 2017?https://www.bea.gov/data/intl-trade-investment/international-trade-goods-and-services Using Table 2 from "U.S. Trade in Goods and Services by Selected Countries and Areas, 1999 - Present," from which three nations (not areas or regions did the U.S. import the highest dollar value of goods and services in 2021? Using Table 2 from "U.S. Trade in Goods and Services by Selected Countries and Areas, 1999 - Present," from which three nations (not areas or regions did the U.S. import the highest dollar value of goods and services in 2017?The following graph depicts the supply and demand curves for U.S. dollars in the foreign exchange market. Suppose that Japan puts quotas on all U.S. imports. On the graph, shift either the supply of dollars curve, the demand for dollars curve, or both curves to best reflect the given scenario. PRICE (Yen per dollar) S D QUANTITY OF DOLLARS (Millions per day) If Japan puts quotas on all U.S. Imports, the U.S. dollar 6.4.
- View the data below for the exchange rate between the US dollar and the Japanese yen. How many yen could you get per dollar at the earliest date shown on the chart? Explain. How many yen could you get per dollar at the most recent date shown on the chart? Explain. Has the dollar appreciated or depreciated in value over time? Explain.In our pretend world there are two countries - Chile and Switzerland - that are engaged in trade. The firm Switzerland Chocolates Express sells Boxes of chocolate (a good) in Chile. Each Box of Chocolates sells for 6500 Chilean pesos in Chile. In Switzerland, each box of chocolates 11 Swiss Franc to produce. Assume that the firm has 1 million boxes of chocolate to sell. How much money (in Swiss Franc) would the firm make (or lose) on the sale at the following exchange rates: Rate 1: 550 Pesos per Swiss Franc Rate 2: 0.0015 Swiss Franc Per Chilean PesoSandals Soybeans Country (Pairs per hour of labor) (Bushels per hour of labor) Peru 12 48 Uruguay 16 32 Consider the countries Peru and Uruguay. They each have 4 million labor hours available per week that they can use to produce sandals, soybeans, or a combination of both. The following table shows the amount of sandals or soybeans that can be produced using 1 hour of labor. If the two countries were to trade, a possible exchange rate would be 3 pairs of sandals to 9 bushels of soybeans. 3 pairs of sandals to 6 bushels of soybeans. 3 pairs of sandals to 3 bushels of soybeans. 3 pairs of sandals to 12 bushels of soybeans. O o o O
- You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia. Analyze the entry country (Australia) based on the following; What are the major exports, dollar value, and trends? What are the major imports, dollar value, and trends? Does the entry country have a surplus or deficit for trade? What are the exchange rates? Are there any restrictions on currency trade? You should also consider sweat shops, skilled labor, employee unrest, political and social activists and labor unions in your analysis.(a) Suppose a computer sells for US$1,200 in the U.S. and for £855 in London. If the exchange rate is £0.65 per dollar, is there any arbitrage (profit opportunity)? Explain (b). (not connected to part a). If the Euro price of one Canadian dollar was 0.770 in 2003 and the exchange rate adjusted to 1.176 Canadian dollar per Euro in 2004, did the Euro appreciate or depreciate against the Canadian dollar. Explain and show your computation.K- Great Britain and the United States produce cheddar cheese and blue cheese. Current domestic prices per pound for each type of cheese are given in the following table United States $35 $50 Cheddar cheese Blue cheese Great Britain £12 €25 Suppose the exchange rate is £1 = 51. If the price ratios within each country reflect resource use, Great Britain has a comparative advantage in the production of cheddar cheese. United States has a comparative advantage in the production of blue cheese. Assume there are no other trading partners and that the only motive for holding foreign currency is to buy foreign goods Explain whether the current exchange rate will lead to trade flows in both directions between the two countries the exchange rate? OA. Only cheddar cheese produced in Great Britain will be traded for blue cheese produced in the United States B. Cheddar cheese and blue cheese will be purchased in Great Britain and sold in the United States OC. Cheddar cheese and blue cheese will be…
- If the dollar increases in value against your INR(It takes more foreign currency to buy one dollar, or said another way, it takes less dollar to buy one unit of foreign currency) will it make US exports to your research country more or less attractive to residents of your research country (assume for questions 3 and 4 that all else is held constant)? Why? will it make US imports from your research country more or less expensive to US residents? Why?A popular measure of a country’s “openness” to international trade is an index computed as the sum of the country’s exports and imports divided by its GDP. Calculate and graph the openness index for the United States using quarterly data since 1947. What has been the postwar trend? Can you think of any factors that might help explain this trend? (Hint: Be careful with the data, as some databases record imports with a negative sign and then add them to exports to get net exports. If that is the case with your data, take the absolute value of imports before adding it to exports, because we are interested in the total volume of trade, not the balance of trade.)Suppose that the price of a commodity is 3 50 in Suppose that the price of a commodity is $3.50 in the United States and €4 in the European Monetary Union and the actual exchange rate between the dollar and the euro is R = $1/€1, but, the equilibrium exchange rate R′ = $0.75/€1. (a) Will the United States import or export this commodity? (b) Does the United States have a comparative advantage in this commodity? Suppose that the price of a commodity is 3 50 in