Suppose the exchange rate between the united states and, Ask an Expert

Economics

Suppose the exchange rate between the United States and China changed from 1USD=6.6CNY to 1USD=6CNY. In addition, there is sudden inflation in the United States but, but not in China.

a. What do you expect to happen to US exports and Chinese imports based on the change in exchange rate (all else equal)?

b. What do you expect to happen to US exports and Chinese imports based on the difference in inflation (all else equal)?

c. You are a US producer of the IPhone and are exporting them to China. Please explain what you prefer to happen to the US/CNY exchange rate as well as relative inflation between the US and China?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91949715

Have any Question?Write your Review or question?

Related Questions in Business Economics

What does this demand sequence meani am assuming that xyand

What does this demand sequence mean? (I am assuming that x,y,and s are related products) Qx= 1.5 -3.0Px + 0.8(Income) + 2.0 Py -0.6 Ps + 1.2(Advertising) Then a year passes and the values are: Px=2 I=2.5 Py=1.80 Ps ...

The newly elected president needs to decide the remaining 4

The newly elected president needs to decide the remaining 4 spots available in the cabinet he/she is appointing. If there are 13 eligible candidates for these positions (where rank matters), how many different ways can t ...

1- a fencer attends a fencing tournament to ensure the

1- A fencer attends a fencing tournament. To ensure the equipment works well, he takes three blades. Two of them will be the backup. The probability of his three blades to function properly are 0.95, 0.8, 0.7 respectivel ...

A manufacturing company wishes to compare two production

A manufacturing company wishes to compare two production facilities based on Defective units out of total unit production. The company obtains random samples from both facilities. Facility A produced a total of 983 units ...

Research research and sample 5000 household concerning tv

Research research and Sample 5000 household concerning TV shows they watch. Based on the sample 18% reported watching 60 Minutes. What is the 95% confidence interval for the proportion of all Americans that watch 60 minu ...

Question parents decided to set aside money for their

Question: Parents decided to set aside money for their child's higher education. The objective is to provide $35,000 in today's dollars after 17 years. Their financial analyst forecasted that the average annual inflation ...

Why would the communities in the territories not be listed

Why would the communities in the territories not be listed for government transfer payments? Why do cities and towns get government transfer income?

A how can use the criteria for evaluating alternative

a) How can use the criteria for evaluating alternative methods of government finance to assess the most important revenue proposals of the 2018/19 budget. b) In the case tax is most important revenue proposals of the 201 ...

If the marginal propensity to consume is equal to 030 what

If the marginal propensity to consume is equal to 0.30, what will be to total change in output (or income) that will result from an increase in government expenditure of 127.4?

In the course of producing its output this firm causes

In the course of producing its output, this firm causes pollution. The government passes a law that requires the firm to stop polluting, and the firm discovers that it can prevent the pollution by hiring 0.2 workers for ...

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