The dollar demand relative to the pound value of imports

Assignment Help Other Management

Reference no: EM13459455

The Dollar demand relative to the Pound; value of imports and exports Let the exchange rate be defined as the number of dollars per British pound. Assume there is an increase in U.S. interest rates relative to that of Britain.

a) Would this event cause the demand for the dollar to increase or decrease relative to the demand for the pound?

b) Has the dollar appreciated or depreciated in value relative to the pound?

c) Does this change in the value of the dollar make imports cheaper or more expensive for Americans? Are American exports cheaper or more expensive for importers of U.S. goods in Great Britain? Illustrate by showing the price of a U.S. cell phone in Britain, before and after the change in the exchange rate.

d) If you had a business exporting goods to Britain, and U.S. interest rates rose as they have in this example, would you plan to expand production or cut back?

Reference no: EM13459455

Questions Cloud

Explain benefits of dap and describe why you feel use of a : you are a parent who is concerned about the new state-mandated textbook-based curriculum for kindergarten and you are

What is a citizens right to privacy and in what form has : what is a citizens right to privacy and in what form has it manifested in recent years? discuss at least three

Whenever the necessary conditions are met a two-tail test : the calculated value of the test statistic will be? the p-value for this two-tail test will be?1 when the necessary

Compare and contrast the culture and health beliefs and : 1.compare and contrast the culture and health beliefs and values of the majority and minority populations in your

The dollar demand relative to the pound value of imports : the dollar demand relative to the pound value of imports and exports let the exchange rate be defined as the number of

Write example of a universal maxim that we as citizens in a : kant sees reason as the only basis for any universal ethics. this gives little room for human emotions such as sympathy

You require to measure the various people in your group and : you are the manager of the production department and the project manager will come from your group. this will be a

A group of elite american protesters durning the time of : a group of elite american protesters durning the time of the revolution who actively tried to keep the mobs from

What is the best way to manage the process of designing and : 1.what is benchmarking and how do public agencies and programs use it to compare their performance against that of

User Account

All Pages