Money change example problem

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Reference no: EM1367317

As the United State dollar appreciates in value relative to the Japanese Yen, what happens to the price of United State goods in Japan? What happens to the price of Japanese goods in United State?

Why would a country (for example China) choose to keep their currency relatively pegged to the U.S. dollar?

If the U.S. dollar were to appreciate considerably against most currencies, what would be the effect on Chinese exports to countries other than the U.S.?

Reference no: EM1367317

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