Would you please explain thoroughly which option is wiser, based on the attached photo?  A manufacturer company in Taiwan sells its goods in 4 regions (North America, Europe, Asia, and Latin America), based on the exchanged rates differences, which decision the company should take to increase the volume of sales and net profit, suppose the average price in the industry is $225? Export with a high price than the average of the industry.  Export with a lower price than the average of the industry. Not to export because the currency of other regions stronger than the Taiwanese dollar. Not to export because the Taiwanese dollar is stronger than other currencies, hence if the company export, the price will be high where other countries may refuse to trade due to high prices and weak currency in importer countries.

Brief Principles of Macroeconomics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter13: Open-economy Macroeconomics: Basic Concepts
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Would you please explain thoroughly which option is wiser, based on the attached photo? 

A manufacturer company in Taiwan sells its goods in 4 regions (North America, Europe, Asia, and Latin America), based on the exchanged rates differences, which decision the company should take to increase the volume of sales and net profit, suppose the average price in the industry is $225?

  1. Export with a high price than the average of the industry. 
  2. Export with a lower price than the average of the industry.
  3. Not to export because the currency of other regions stronger than the Taiwanese dollar.
  4. Not to export because the Taiwanese dollar is stronger than other currencies, hence if the company export, the price will be high where other countries may refuse to trade due to high prices and weak currency in importer countries. 

 

Exchange Rates
Taiwan dollars priced in regional currencies
Affecting Year 9
Previous Years
YEAR 8
YEAR 9
REVENUE IMPACT
U.S. S
0.0358
0.0358
0.00%
Euro
0.0300
0.0302
-3.33%
Brazilian real
0.1762
0.1809
-13.34%
Singapore S
0.0481
0.0483
8%
The sizes of the exchange rate adjustment each year are always equal to 5 times the actual period-to-
period percentage change in the real-world exchange rates. Multiplying the actual % change by 5 is
done so as to translate exchange rate changes over the few days between decision periods into
changes that are more representative of a potential full-year change.
Transcribed Image Text:Exchange Rates Taiwan dollars priced in regional currencies Affecting Year 9 Previous Years YEAR 8 YEAR 9 REVENUE IMPACT U.S. S 0.0358 0.0358 0.00% Euro 0.0300 0.0302 -3.33% Brazilian real 0.1762 0.1809 -13.34% Singapore S 0.0481 0.0483 8% The sizes of the exchange rate adjustment each year are always equal to 5 times the actual period-to- period percentage change in the real-world exchange rates. Multiplying the actual % change by 5 is done so as to translate exchange rate changes over the few days between decision periods into changes that are more representative of a potential full-year change.
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