What would be the new exchange rate

Assignment Help Business Economics
Reference no: EM132446041

American wine and French wine are the same. American wine cost $11 and the exchange rate is 1euro=$1.10 Transportation cost across border is not considered. suppose the price of everything in the US rises by 20%, but the price level in France does not change. Explain why the exchange rate should eventually change. What would be the new exchange rate?

Reference no: EM132446041

Questions Cloud

Why is human capital important : Artificial intelligence and robots are estimated to replace 30% of the global workforce, primarily blue collar and unskilled labor, within thirty years.
Perform a series of tasks without human intervention : The office of Naval Research sponsors a contest for college student to build underwater robots that can perform a series of tasks without human intervention.
Discuss about the marketing of arts festivals : What does hypothesis mean in research? Discuss the importance of hypothesis in a research. Discuss about The marketing of arts festivals
What happens to the monetary base and money supply : If a central bank wants to support the value of its currency by purchasing it with its FX reserves, what happens to the monetary base and the money supply
What would be the new exchange rate : Explain why the exchange rate should eventually change. What would be the new exchange rate?
What are the impact of social media on college students : What are The Impact of Social Media on College Students.including Lack of privacy,Effect on behavio, Effect on writing skills, Impact on future caree
Assignment - Starbucks Business Report : Module name - Strategy. Report/Assignment Title - Starbucks Business Report. BPP University, UK. Write Business Report for the CEO on performance of Starbucks
Write about one or two discrepancies : Apply Murray's article, "The Maker's Eye" to your own experiences.Write about one or two discrepancies.challenged you to think in new ways about writing.
How will use evidence to create buy in-logos : What type of evidence will work best to support your main points? (Logos) How will you attempt to use reasoning to intrigue your listeners? (Logos)

Reviews

Write a Review

Business Economics Questions & Answers

  Market place for prescription drugs

What would happen to the market place for prescription drugs if you no longer needed a prescription from any type of health care provider?

  Machine costs and increases revenues-present worth

A machine costs $50,000, and increases revenues by $18,000 per year. However, O&M costs increase by $4,000 per year. The machine lasts 6 years and your MARR is 7% annual rate compounded annually. What is the Present Worth (or Net Present Value) and s..

  Quantity of labor do the marginal returns

a. At what quantity of labor do the marginal returns to labor begin to diminish?

  Possible rolls of a single six-sided die

Consider the population of all possible rolls of a single six-sided die.

  Market demand be given by the inverse demand curve

Let market demand be given by the inverse demand curve P = 50 − 2Q, where Q = q1 + q2, q1 is firm 1’s output level and q2 is firm 2’s output level. The cost function for firm 1 is T C1 = 2q1 , and for firm 2 is T C2 = 2q2 . Firms are Cournot competit..

  Market power and the role of the government

Do you think the role of government will be greater or less in healthcare in the next ten years? Why or why not?

  Supply and demand conditions of southwest airlines

Supply and demand conditions for any company are determined by many different factors. The airline industry is a "volatile industry subject to numerous.

  Incentive to conduct operations at a domestic level

What is the corporate tax rate compared to individual tax rates? Please explain. Do large corporations have an incentive to conduct operations at a domestic level as opposed to outsourcing entities of the corporate to include employment?

  Initial public offering

On December 12 of 1980, Apple Computer sold shares in an initial public offering (IPO) for $22 per share. Since then, the stock has split 2-for-1 three times: June of 1987, June of 2000, and February of 2005. If you bought 100 shares at the IPO and s..

  How do we measure efficiency in economics

How do we measure efficiency in economics? Meaning we are getting more efficient but how is it measured?

  Developing a health food concept

To decide whether or not to proceed developing a health food concept, a company carried out a concept test. The company decided it will 'go

  Defined to include only imports of final goods

hould the measure of imports used in the GNP accounts therefore be defined to include only imports of FINAL goods and services from abroad. What about export.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd