Question

Your selected country is experiencing a strong and appreciating currency against the U.S. dollar. How could...

Your selected country is experiencing a strong and appreciating currency against the U.S. dollar. How could this affect the price of your product to export in your selected country?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

If the currency of Japan, Yen is appreciating and we are exporting some US product to Japan then it will decrease the price of the Us goods to Japan and increase the US exports. the more the Yen appreciates against the dollar the more we will be able to export the goods to japan.

For example, If $1 = 100 Yen. Then the goods which was $1 in the Japanese were paying 100 yen for it Now after the appreciation $1 = 80 yen then the same good will cost only yen i.e. 20 yen less in japan, it will increase the exports. they will be buying more at a lower price.  

answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
How can a country intervene to keep its currency from appreciating? Why would a country want...
How can a country intervene to keep its currency from appreciating? Why would a country want to do this?
Opinion about Strong Dollar Recently U.S. dollar has been very strong relative to the major currencies....
Opinion about Strong Dollar Recently U.S. dollar has been very strong relative to the major currencies. Do you like it? How could a strong dollar affect U.S. firms?
if the U.S currency becomes stronger (the value of a dollar increases), there is a change...
if the U.S currency becomes stronger (the value of a dollar increases), there is a change in International valrables. How does this situation affect the Ad-AS diagram? what will happen to the equilibrium price level and real GDP in the short run? is the economy experiencing an inflationarygap or recessionary gap?
The country of Daytona, whose currency is the U.S. dollar and the country of Prescott have...
The country of Daytona, whose currency is the U.S. dollar and the country of Prescott have the same real interest rate of 3 percent. The expected inflation over the next year is 6 percent in Daytona versus 21 percent in Prescott. The one-year currency futures contract on Prescott’s currency (called the pres) is priced at $.30 per pres. What is the spot rate of the pres assuming interest rate parity holds? Estimate the expected profit or loss if an investor...
One function of the foreign exchange market is to convert the currency of one country into...
One function of the foreign exchange market is to convert the currency of one country into the currency of another. A second function of the foreign exchange market is to provide insurance against foreign exchange risk. The most common approach to exchange rate forecasting is fundamental analysis. This relies on variables such as money supply growth, inflation rates, nominal interest rates, and balance-of-payment positions to predict future changes in exchange rates. Identify a country outside of the U.S. and its...
Consider a period in which the U.S. dollar strengthens against the euro. How will this affect...
Consider a period in which the U.S. dollar strengthens against the euro. How will this affect the reported earnings of a U.S. based MNC with European subsidiaries? A. The reported earning will be lower B. The reported earning will be higher C. The reported earning will not be affected
8) What is U.S. financial account surplus/deficit and how it differs from U.S. current account surplus/deficit?...
8) What is U.S. financial account surplus/deficit and how it differs from U.S. current account surplus/deficit? 16) Under what conditions could a country have a sizable deficit in its trade balance and still have an appreciating currency?
Recently, you found that the U.S. dollar appreciated against the New Zealand dollar and depreciated against...
Recently, you found that the U.S. dollar appreciated against the New Zealand dollar and depreciated against the Chinese yuan. If your goal was to promote U.S. exports, what would be your strategies? Address the concepts below within your submission. Discuss the operation of the foreign exchange market. Explain how traders benefit from the forward exchange market. Describe how exchange rates are determined in a free market. Response must be 300 words.
The following 2 questions are based on this information. Currency Exchange Rates Table U.S. Dollar Japan...
The following 2 questions are based on this information. Currency Exchange Rates Table U.S. Dollar Japan (Yen) 92.15 Chile (Pesos) 520.5 China (Yuan “Renminbi”) 6.82 A purse costs $50 in the U.S, 5500 Yens in Japan, 23000 Pesos in Chile, and 410 Yuans in China. Which country has the best deal (lowest price) using the above Currency Exchange Rates Table Select one: a. USA b. Japan c. Chile d. China Which country has the worst deal (highest price) using the...
The country of Queensville is planning to issue bonds denominated in U.S. dollars. The bond issue...
The country of Queensville is planning to issue bonds denominated in U.S. dollars. The bond issue will be worth $1 billion. The current exchange rate between the dollar and the queeny (Queensville’s currency) is $1 equals 1 queeny. Suppose the exchange rate changes so $1 is now equal to 1.25 queeny. a.         Did the queeny appreciate or depreciate against the dollar. Explain. b.         How much will it cost Queensville to repay this loan?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT