5) An Italian textile firm is about to build a factory in South Carolina. With the increases in USD against Euro (Ceteri

[answerhappygod]

5) An Italian textile firm is about to build a factory in South
Carolina. With the increases in USD against Euro (Ceteris paribus),
will this increase or decrease the Italian
textile firm’s original budget (The amount of euro they need to
convert to USD?) (1 point)
6) Mr. Choe is vacationing in Europe where euro is mainly
used. With the increases in USD against Euro (Ceteris
paribus), what happened to my purchasing power
(increased or decreased) if I set my budget to $2,000
spending while I am there? (1 point)
Now, let's play with numbers to explain the concepts
above.
7) Yesterday, 1 Euro was worth $1.22. What is the euro price of
a dollar? (In other words, $1 USD is worth how much Euro?) 1
point
8) iPhone XS Max costs $1,449 USD. How much the phone
will cost in following countries’ currencies based on the
conversion rates given below? (1 point each x 5 = 5 points
total)
Country
Currency
Conversion Rate
CANADA (?)
DOLLAR (CAD)
1 CAD = 0.787464 USD
CHINA (?)
YUAN (CNY)
1 CNY = 0.1593245 USD
GREAT BRITAIN (?)
POUND (GBP)
1 GBP = 1.3631 USD
JAPAN (?)
YEN (JPY)
1 JPY = 0.0094313 USD
MEXICO (?)
PESO (MXN)
1 MXN = 0.056506 USD
9) If the USD (value) appreciates against the above foreign
currencies, will that make the iPhone more expensive or cheaper for
them to buy? 1 point
10) If a PlayStation 4 costs 30,000 yen in Japan, how much will
it cost in U.S. dollars if the exchange rate is (2 points each
x 3 = 6 points total)
(a) 110
yen = $1?
(b) 1 yen
= $0.009?
(c) 100
yen = $1?
11) As you can see from your answers above, the cost of the PS4
didn't change BUT your price to buy the PS4 changed just because
the foreign exchange rate between the two countries changed.
When you compare the prices between a and c, did it get
cheaper or more expensive? 1 point