Determine impact of the strong singapore dollar

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Reference no: EM1359370

In 1994, the Singapore dollar rose by 9% in real terms against the U.S. dollar. What was the likely impact of the strong Singapore dollar on U.S. electronics manufacturers using Singapore as an export platform? Consider the following facts. On average, materials and components--85% of which are purchased abroad-account for about 60% of product costs. Labor accounts for an additional 15%; other operating costs account for the remaining 25%.

Reference no: EM1359370

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