Determine is the degree of pass-through for alcones product

Reference no: EM133710960

Question: Alcone Inc. produces in both Europe and the United States. Last year when the exchange rate was 1.25 $/Euro, Alcone Inc. set its price in europe at 120 Euros and its price in the United States at the equivalent dollar amount, $150 . This year the value of the dollar is 1.45 $/Euro. After some examination, Alcone Inc. decides that it will keep the price in Europe constant, but will adjust the U.S. price to $160. In this case, what can we determine is the degree of pass-through for Alcone's product?

Reference no: EM133710960

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