Suppose that the euro euro appreciates from 100 per euro1, Ask an Expert

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Suppose that the euro (€) appreciates from $1.00 per €1 to $1.20 per €1. Determine whether the underlined individuals listed below would see that appreciation as a good or a bad thing.

a. A U.S. business buys €10,000 of chemicals from a German company.

b. An Italian clothing company buys $100,000 of leather from a U.S. leather maker.

c. A U.S. resident has a retirement account totaling €500,000 in a German bank.

d. U.S. company must make an interest payment of €25,000 to the French bank from which it borrowed last year.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91425731

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