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What is the cross rate between the pula and the zloty

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Reference no: EM132913003

Holden Motor sells Commodore at AUD35, 000 in Australia and also exports to Singapore. The AUD appreciated by 25% relative to the Singaporean dollar (SGD) from SGD1/AUD to SGD1.25/AUD. However, in Singapore, the price of the car is AUD38, 000.

Question 1: How much should the car have been sold in Singapore given the depreciation of SGD?

Question 2: What is the degree of exchange rate pass through?

Question 3: Assume that the Polish currency (called Zloty and denoted PLN) is worth AUD $0.32. The Australian dollar is worth 0.7 Euros (EUR). An Australian dollar can be exchanged for 8 Botswana Pula's (denoted BWP). What is the cross rate between the Pula and the Zloty i.e. BWP/PLN?

Reference no: EM132913003

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