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Two countries, Tanzania and Kenya produce only one good, wheat. Suppose the price of wheat in Tanzania is TZS325 and in Kenya is KES135
- According to the law of one price, what should the TZS/KES spot exchange rate be?
- Suppose the price of wheat over the next year is expected to rise to TZS350 in Tanzania and KES160 in Kenya. What should the one year TZS/KES exchange rate be?
You have been asked by JJ Corporation, a California-based firm that manufacturers and services digital satellite television systems.
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in an essay of 250-500 words use the scenario presented in part 1a above to answer the following questionswhat
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