Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Discussion US dollar also Canadian dollar
You are trying to decide whether to buy some laptop computers for your business in either Canada or in United States. Looking at identical machines on the Dell Canada also the Dell US web sites, you find which they sell for US $2000 (US dollars) in the United States also C$3,000 (Canadian dollars) in Canada

(i) Where would you buy the laptop computer if the exchange rate between the Canadian dollars also the U.S. dollar is U.S. $0.80 per Canadian dollar?

(ii) Where would you re-sell it if you wanted to make a profit? (Ignore any taxes, tariffs, transportation costs also differences in quality).

(iii) Does purchasing power parity hold?

(iv) If many Canadian also American businesses acted like you also if the exchange rate was flexible, illustrate what would happen to the value of the exchange rate?

(v) Illustrate what would be the new equilibrium exchange rate which would make purchasing power parity hold for laptops, if the U.S. dollar price also the Canadian dollar price stayed constant?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M916451

Have any Question? 


Related Questions in Business Economics

1 some us companies have 1-year terms for directors the

1. Some U.S. companies have 1-year terms for directors. The entire corporate board must run for election at each annual meeting. Other companies have 3-year terms; only a third of directors face votes at each meeting. A ...

Sarah has a saving account with a 1000 balance that earns 3

Sarah has a saving account with a $1,000 balance that earns 3% APY. She decides to withdraw the entire balance to buy a laptop computer. What will be her opportunity cost in buying the laptop? a. the cost of the laptop b ...

The operator of the tunnel that links britain and france

The operator of the tunnel that links Britain and France, Eurotunnel, said that commercial and tourist traffic using its car and coach shuttle service had fallen sharply, leading to a drop in operating revenues of 4%. Eu ...

1 a in your own words explain the difference between a

1 (a) In your own words, explain the difference between a movement along the demand curve and a shift in demand. Then, provide an example from your own personal life where you have experienced each one. In your own words ...

Statement of cash flowshampton industries had 60000 in cash

Statement of Cash Flows Hampton Industries had $60,000 in cash at year-end 2015 and $17,000 in cash at year-end 2016. The firm invested in property, plant, and equipment totaling $240,000. Cash flow from financing activi ...

Quails gate winery from west kelowna in the okanagan valley

Quail's Gate Winery from West Kelowna in the Okanagan Valley, has a terrible problemwith Grape phylloxera which is a pest that feeds on grapevine's roots and as a consequence deforms these roots and makes them prone to f ...

1 dumping is illegal in international trade but is

1. Dumping is illegal in international trade, but is practiced by some countries/companies. Describe how a company or country would be accused of committing "dumping". 2. Define and provide examples of tariff, import quo ...

From california to new york legislative bodies across the

From California to New York, legislative bodies across the US are considering eliminating or reducing the surcharges that banks impose on non-customers who make $12 million in withdrawals from other banks’ ATMs. On avera ...

Marketing analysis for netflix company top 12 innovative

Marketing Analysis for NETFLIX COMPANY TOP 12 INNOVATIVE COMPANY FOR 2016 BY FORBES. 1-. Discuss the relationship between innovation and a balanced strategic planning approach. Incorporate references to your work experie ...

Thrope inc purchased 1900 pounds of direct material at a

Thrope, Inc. purchased 1,900 pounds of direct material at a price of $1.30 per pound. The standard price of the material is $1.42 per pound. Thrope used 1,300 pounds in production while the standard pounds allowed for ac ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate