In which country is the bicycle cheaper

Reference no: EM133623960

Problem: Assume that the price of a Canadian bicycle is CAD100, the price of a German bicycle is (100, and the nominal exchange rate is E1 = CAD1. In which country is the bicycle cheaper? Explain using the value of the exchange rate. If the exchange rate changes to E1.25 = CAD1, in which country is the bicycle cheaper? Explain using the value of the exchange rate.

Reference no: EM133623960

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