- Calculate
the following: (1) If the British pound is worth $1.42, how much would
you have to pay in England for a compact disk that is worth $16.00?
(2) If the Canadian dollar is equal to $.72 in American money, what
is the Canadian equivalent of $15.00 American? (3) If it takes 1,372
Italian lira to buy $1.00, how much is an Italian sweater purchased
for $27,000 lira in American dollars?
- Use
the following scenarios to analyze the effects on trade of a change
in exchange rates: In one year, the American dollar equaled 250 Japanese
yen; in the following year, the American dollar equaled 150 yen; and
in the third year, it equaled 200 yen. If a Nikon camera costs 75,000
yen and a Sony Walkman radio costs 25,000 yen: (1) What will be the
price in dollars of these two products in each year for an American?
(2) Will an American want to buy more or fewer Japanese products in
year one, in year two, and in year three? Explain
|
