How many U.S. dollars does a U.S. importer need to pay for 100,000 yen worth of stereo equipment when the price of 1 yen is $0.008?
a. $125 million
b. $1.25 million
c. $80,000
d. $1,250
e. $800
e
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If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 20 rand/US$, then
A) there is an arbitrage opportunity by buying the wine in the U.S., and selling it in South Africa and the price in South Africa will drop. B) there is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will drop. C) here is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will rise. D) there is no arbitrage opportunity.
Some economists argue that there is no such thing as a short-run Phillips curve. Who are these economists and what is their argument?
Assume that corn and soybeans are alternatives that could be grown by most farmers, An increase in the price of corn will
What will be an ideal response?
Using game theory as an analytical tool, if one large nation imposes tariffs, the total cost is small; however, when several trading partners do the same:
a. the costs are even smaller. b. the costs balance out and there is no harm. c. the costs are the same but the potential gains are much smaller . d. then all nations gain.