What is the percentage change in the real value

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The New Zealand dollar value changed from US$ 0.64 (US$ 0.64 = NZ$ 1) at the beginning of the year to US$ 0.63 at the end of the year. The US inflation is 2% and New Zealand inflation is 8% during the year.

a) What is the percentage change in the real value of the New Zealand dollar against the US dollar during the year? Show our calculations.

b) What has happened to the competitiveness of New Zealand manufacturing companies over the year?

Reference no: EM133072040

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