Solution-Pre-devaluation and post-devaluation trade balance

Pre-devaluation and post-devaluation trade balance

Assignment Help Project Management

Reference no: EM132348743

Assume that the United Arab Emirates has the following import/export volumes and prices. It undertakes a major "devaluation" of the UAE Dirham (AED) by 6% on average against all major trading partner currencies. What is the pre-devaluation and post-devaluation trade balance?

Initial cross exchange rate, AED/€ = 4.2

Price of exports, (AED) = 100 billion

Price of imports, (€) = 112 billion

Quantity of exports, units = 300

Quantity of imports, units = 200

Percentage devaluation of the AED = 6%

Price elasticity of demand, imports = -0.85

Reference no: EM132348743

Questions Cloud

How psychological and sociological factors can impact : Evaluate by using you as a reference, discuss on how psychological and sociological factors can impact on purchasing decision of consumers on a luxury product.

What proportion of erika''s portfolio must be invested : In order to achieve the desired expected return of 12.5 percent, what proportion of Erika's portfolio must be invested in the S&P 500 index fund?

What is the expected net present value : What is the expected net present value (NPV), Internal Rate of Return (IRR) and Modified Internal Rate of Return (MIRR) of the new business?

What is the underlying asset for the options : What is the underlying asset for the options in this real-life example?

Pre-devaluation and post-devaluation trade balance : Assume that the United Arab Emirates has the following import/export volumes and prices. It undertakes a major "devaluation" of the UAE Dirham

Understanding of how the mathematical equation : I understand compound interest and yearly contributions but am lacking the understanding of how the mathematical equation would work with yearly contributions.

Lessee entries with bargain purchase option : The following facts pertain to a non-cancelable lease agreement between Mooney Leasing and Choi Group, a lessee (amounts in thousands).

What is the value of a par value : What is the value of a $1,000 par value 6% coupon bond with 7 years remaining to maturity assuming annual coupon payments

Calculate the project payback and discounted payback : Calculate the project's payback and discounted payback period assuming steady cash flows. Also calculate the project's NPV and IRR. Should the project be funded

User Account

All Pages

Pre-devaluation and post-devaluation trade balance

Reference no: EM132348743

Reference no: EM132348743

Questions Cloud

Reviews

Write a Review

Project Management Questions & Answers

Create a project schedule and align resources

Managerial roles and gap analysis

Questionaire on project management

Describe the market growth rate for product

Prepare a work plan and project schedule - gantt chart

Project risk management approach

Black-scholes options pricing model

Describe the features or characteristics of product

Write paper on inventory management system

Analysis of the overall project risk

Investment and performance analysis

Distribution strategy and project management

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT