D LUC Sakal: INFS 247 104 F 1510254011283 Chi Luc Sakal: My Work..M 2 Average: 1
ID: 1106171 • Letter: D
Question
D LUC Sakal: INFS 247 104 F 1510254011283 Chi Luc Sakal: My Work..M 2 Average: 1/2 6. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency Suppose the following table presents nominal exchange rate deta for November 26, 2014, in terms of U.S. dollars per unit of foreign currency, Use the information in the table to answer the questions that follow (Dolilars) Canadian doller (CAD) Euro (EUR) Japanese yen (JPY) 0.8666 0.008538 0.0942 1.7552 pound (GBP) Suppose that on November 26, 2014, an antique woven rug handmade in the United Kingdom is priced at GBP 570. The approximate U.s. dollar price of the rug would beY If the nominal exchange rate for the U.S. dollar-Mexican peso falls from $0.0942 to $0.07065 per Mexican peso, the Mexican peso value, or ' relative to the U.S. dollar 9Explanation / Answer
1) Given, 1 GBP=1.7552 USD
Therefore, 570 GBP=(570*1.7552)=$ 1000.464 (USD)=Price of rug
2) The Mexican Peso decreases in value, or depreciates, relative to the US Dollar.
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