1 assume you are an american importer who imports christmas, Ask an Expert

Economics

1. Assume you are an American importer who imports christmas toys from China and has to pay 250,000 chinese Yuans at the end of 60 days. If you don't hedge this transaction in the forward market, you face a loss if the Chinese Yuan:

A. is fixed in value

B. Depreciates against the dollar

C. Appreciate again the dolar

D. either appreciates or depreciates against the dollar

2. Assume that the United States faces an 3 percent inflation rate while no (zero) inflation exists in Japan. According to the purchasing-power parity theory, the dollar would be expected to:

a. Appreciate by 3 percent against the yen

b. Depreciate by 3 percent against the yen

c. Remain at its existing exchange rate

d. None of the above

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92202816

Have any Question?Write your Review or question?

Related Questions in Business Economics

In a specific sample size of 100 what is the range within

In a specific sample size of 100, what is the range within the groups average iron level would be considered ususal? Using the Central Limit Theorem and the Empirical Rule.

Assume p 65 - 2q the cost per additional unit mc is zero

Assume P = 65 - 2Q. The cost per additional unit (MC) is zero for the first five units, and then $5 per unit after that. There are fixed costs of $50. Once the optimal level of output is determined, how much profit does ...

Consider a french-owned cheese factory located in paris

Consider a French-owned cheese factory located in Paris, France. Are the goods made by the cheese factory part of the U.S. Gross Domestic Product (GDP)? Are these goods included in the U.S. Gross National Product (GNP)? ...

What is marginal revenue for both perfect competition and

What is Marginal Revenue? For both Perfect Competition and Monopoly, explain the relationship between marginal revenue and demand.

What type of exchange rate is associated with a higher

What type of exchange rate is associated with a higher probability of experiencing a crisis? Why?

Identify at least five factors that are likely to cause the

Identify, at least, five factors that are likely to cause the increase in the demand for nurses and five factors that are likely to cause a decline in the supply of nurses, or the failure of supply to keep up with demand ...

Consider the market for pizza in middleton ontario whose

Consider the market for pizza in Middleton, Ontario, whose demand and supply schedules are given in the table below. Price of Pizza ($) Quantity Demanded Quantity Supplied 10 0 6 9 1 5 8 2 4 7 3 3 6 4 2 5 5 1 4 6 0 3 7 0 ...

A random sample of 15 families of four traveling in hawaii

A random sample of 15 families of four traveling in Hawaii have a mean daily cost for meals and lodging of $627 with a standard deviation of $168. Answer the following to create 90% confidence interval for the true mean ...

What steps do i take to calculate if a person bought 1

What steps do I take to calculate, If a person bought 1 share of Google stock within the last year, what is the probability that the stock on that day closed at more than $950? Please explain the steps and you can use di ...

What in your view are some of the key problems in the

What, in your view, are some of the key problems in the Chinese economy? How would you address these problems if you were asked to provide policy advice to the Chinese government?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert