2. Consider the United States and the countries it trades with the most (measure
ID: 1109351 • Letter: 2
Question
2. Consider the United States and the countries it trades with the most (measured in trade volume): Canada, Mexico, China, and Japan. For simplicity, assume these are the only four countries with which the United States trades. Trade shares and exchange rates for these four countries are as follows: (Hint: read slides #8-12 for Topic 8) Count Canada Mexico China Trade Share 36% 28% 20% 16% $ per FX in 2015 $ per FX in 2016 0.8271 0.0683 0.1608 0.0080 currenc 0.6892 0.0538 0.1522 0.0086 (dollar) (peso) uan Japa en (1) Compute the percentage change from 2015 to 2016 in the four U.S. bilateral exchange rates (defined as U.S. dollars per unit of foreign exchange, or FX) in the table provided.Explanation / Answer
Answer 1
THe percentage change of US bilateral exchange rate with the countries as mentioned during 2015 to 2016 are as follows.
with Canada, the % change = {(0.8271- 0.6892)/0.8271}x100
= 16.67 %
With Mexico = {(0.0683 -0.0538)/0.0683}x100
= 21.22 %
With China = {(0.1608- 0.1522)/0.1608}x100
= 5.35 %
With Japan = {(0.0080 -0.0086)/0.0080}x100
= -7.5 %
With the three countries of canada Mexico and China, the US dollar became stronger. But in case with Japan, the US dollar depreciated.
Answer (2)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.