Perform convenience translation into us dollar for each year

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Question - The following sales revenue pattern is for a British trading concern.

 

2009

2010

2011

Sales revenue

£23,500

£28,650

£33,160

Required -

a. Perform a convenience translation into U.S. dollars for each year given the following year-end exchange rates:

2009 £1 = $2.10

2010 £1 = $2.20

2011 £1 = $1.60

b. Compare the year-to-year percentage changes in sales revenues in pounds and in U.S. dollars. Do the two time series move in parallel fashion? Why or why not?

c. Suggest a method for minimizing the effect of exchange rate changes on foreign currency trend data.

Reference no: EM133075659

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