User Account

All Pages

How many of the foreign currency

Assignment Help Business Economics
Reference no: EM133128150

* Please explain

Use the table below, which shows how many of the foreign currency units are required to buy one US dollar, to answer the following.

Country June 2001 June 2006

Brazil (real) 2.479 2.188

China (yuan) 8.277 8.114

Mexico (peso) 9.104 11.421

You and a friend, Yi, are considering a summer vacation to one of two locales: Mexico or Brazil. Mexico's currency unit is the Mexican peso and the real is used in Brazil. You live in the United States and Yi lives in China. The cost of the hotel is denominated in local currency units. You and Yi are trying to choose the locale with the lowest hotel expenses. The price of a hotel room is 200 reals per night in Brazil and 800 pesos per night in Mexico. Assume these prices remain unchanged between 2001 and 2006.

a. Calculate the U.S. dollar price of a hotel room in Brazil and in Mexico for June 2001. Calculate these prices for 2006. Based on your answers, where would you spend your vacation in June 2001? In June 2006?

b. For June 2001 and June 2006, calculate the following:

i. Real/Yuan exchange rate (The real price of one Yuan)

ii. Peso/Yuan exchange rate, (The peso price of one Yuan)

c. Using your answers from (b) and the information in the table, calculate the Chinese Yuan price of a hotel room in Brazil and in Mexico for June 2001. Also calculate these prices for 2006. Based on your answers, where would Yi prefer to spend her vacation in June 2001? In June 2006?

Reference no: EM133128150

Questions Cloud

What is the maximum rrsp contribution jazz can make : Jazz earned $120,000 in employment Income last year and $117,500 the year before. What is the maximum RRSP contribution Jazz can make
Health services differs from competitive market : What are the main ways in which the market for health services differs from a competitive market? What are two changes to the market for health services you wou
Nuclear energy and renewable energy : Describe the benefits of, and any problems associated with, A) fossil fuels B) nuclear energy and C) renewable energy.
What are the book value and market value of the firm now : In 2019, XYZ Corporation was formed by selling 100,000 shares of stocks (each $6) What are the book value and market value of the firm now
How many of the foreign currency : Use the table below, which shows how many of the foreign currency units are required to buy one US dollar, to answer the following.
Discuss the process to ensure future projects : Discuss the process to ensure future projects are conducted and implemented in increasing efficient manner. What are some of the effective practices in project
What is the sales price variance for the month : Quality Oy does not absorb production overheads using an overhead absorption rate. What is the sales price variance for the month
How will project oversight impact the organization : What is project oversight? How will project oversight impact the organization? How will it impact the project manager?
Perform an activity in-house : According to TCE, how does Frequency affect the decision of a firm to perform an activity in-house or through a buyer-supplier relationship? Explain.

Reviews

Write a Review

Business Economics Questions & Answers

  The category compensation of employees

The category “compensation of employees” doesn't capture the full income of labor because:

  Assume economy that consists of consumers and government

Assume an economy that consists of consumers, government, business investors and an international sector. we will express this economy this way C+I+G+X=GDP Assume that the MPS is .3 How much can we expect the economy to expand if goverment increases ..

  Communicate compensation strategies to leaders

How can maps be used to clarify and communicate compensation strategies to leaders? to employee?

  Nominal money supply considerably for several years

Suppose a central bank has increased its nation's nominal money supply considerably for several years in a row, but without any increase in inflation. Over the same time, suppose its economy has not grown. Assume the economy is initially in a long-te..

  What effect would a depreciation of the us dollar

What effect would a depreciation of the U.S dollar, relative to the Chinese Yuan, have on both our exports to China and our imports from China?

  What are the potential consequences of a country having

What are the potential consequences of a country having a large overall debt? If you were in the position to implement a solution for the country’s long-term debt, what would it be and why?

  Complementary goods or services

Identify a good or service that you've purchased in the past week. What are some complementary goods or services to the good or service you've identified? (Note: this is not asking you to identify free goods or services that come with the purchase..

  Determine perpetual equivalent annual worth

Determine its perpetual equivalent annual worth (in years 1 through infinity) at an interest rate of 10% per year.

  Production of the third unit of output

The marginal cost associated with the production of the third unit of output is

  Main program and output results

Pass the necessary parameters to the appropriate function then return the volume to the main program and output results.

  Consumer surplus-producer surplus and total surplus

Assuming $5 to be the equilibrium price for this market, please shade in Consumer Surplus (CS), Producer Surplus (PS), and Total Surplus (TS). Assume Felix is willing to pay $8 for a pizza cutter. Tim also wants one, but would only be willing to pay ..

  Theory of the various economic systems

There are three different Economic systems, Capitalism, Socialism, and Mixed Economy. How do you think the theory of the various economic systems

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd