5. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal

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5 Pricing Foreign Goods The Nominal Exchange Rate Is The Price Of One Currency In Terms Of Another Currency A Nominal 1 (25.56 KiB) Viewed 32 times

5. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table presents nominal exchange rate data for May 21, 2019, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Cost of One Unit of Foreign Currency (Dollars) 0.3666 0.8493 Foreign Currency Brazilian real (BRL) Canadian dollar (CAD) Euro (EUR) Japanese yen (JPY) Mexican Peso (MXN) United Kingdom Pound (GBP) 1.3288 0.009748 0.0889 1.8965 Suppose that on May 21, 2019, an ornamental bookcase handmade in Germany is priced at EUR 760. The approximate U.S. dollar price of the bookcase would be in . If the nominal exchange rate for the U.S. dollar-Mexican peso falls from $0.0889 to $0.066675 per Mexican peso, the Mexican peso value, or relative to the U.S. dollar.