Suppose Mexicans suddenly develop a strong taste for Japanese anime (an animation style).
a.) ________________________
b.) Mexican Peso________________________
Japanese Yen________________________
c.) Mexican net exports________________________
Japanese net exports________________________
a) The demand for Japanese Yen would increase as Yen would be required to purchase anime. So the mexicans would exchange pesos for Yen, which would eventually increase the demand for Yen in foreign exchange market.
b) As value of mexican pesos will depriciate as the supply of pesos would increase in the foreign exchange market. So the currency will be devalued. The value of Japanese Yen would appreciate due to the increase in demand of Yen in the foreign exchange market.
c) The net exports of Mexico would increase. This is because the Mexican goods will be cheaper for the foreigners due to the depreciation of the Mexican pesos. For Japan, the net exports other than amine would decrease as the Japanese goods would become costly for the foreigners due to the appreciation in the value of Japanese yen.
Suppose Mexicans suddenly develop a strong taste for Japanese anime (an animation style). What happens to...
Suppose Mexicans suddenly develop a strong taste for Japanese anime (an animation style). What happens to the value of the Mexican Peso in the foreign exchange market? What about Japanese Yen? What happens to the quantity of net exports in Mexico, other than anime, as a result of your answer in part b? What about the Japan? 1.) Mexican Peso________________________ Japanese Yen _________________________ 2.) Mexican net exports________________________ Japanese net exports ________________________
answer these 4 . will rate after
Which of the following increases the price of the dollar relative to the Mexican peso? o an increase in the demand for dollars an increase in the supply of dollars O an increase in the demand for pesos an increase in the supply of pesos If a Germany company must purchase products from a U.S. firm, it must first O convert its euros into US dollars in the foreign exchange market. O convert...
9. Suppose nominal exchange rates are 110 Japanese yen per dollar, 0.9 euro per dollar, and 16 Mexican pesos per dollar. A pizza costs 1,600 yen in Tokyo, Japan, 12 euro in Munich, Germany, 180 pesos in Mexico City and 12 dollars in Raleigh, North Carolina. Which of the following statements is (are) correct? (x) Pizza is more expensive in Tokyo than Mexico City but less expensive than in Munich. (y) Pizza is less expensive in Raleigh than Munich but...
7) What is (are) a major factor(s) contributing to Europe's poor economic recovery? A) Increased growth in China & emerging markets. B) A strong euro. C) Slow growth in China & emerging markets. D) B&C. 8) If the cost of oil goes down in US dollars, but the value of the US dollar climbs against the euro: A) The effect of the price of oil for Europeans is uncertain. B) Oil is cheaper for European buyers. C) Oil is more...
Foreign Currency Analysis Country Monetary Unit Date 1 Dollar per Unit of Foreign Currency Date 2 Dollar per Unit of Foreign Currency Invoiced Units Increase/ (Decrease) Britain Pound 9/17/2014 0.6162 10/17/2014 0.6245 10,000 Canada Canadian dollar (CAD) 10,000 China Renminbi 10,000 France Euro 10,000 Japan Japanese yen 10,000 Mexico Mexican peso 10,000 he purchases order is submitted to your company when the goods were delivered but will be paid 30 days from that date in the currency you have...
19. Consider the following Solow-Swan model in which output per capita is given by y-Aks, the total factor productivity parameter is 2, the savings rate is 50%, the depreciation rate is 20% and the population growth rate is 5%. The steady state value of the output per capita, y, for this economy is: 1 a. b. 4 c. 8 d. 16 20. Which of following best describes when purchasing power parity does and does not hold? a. A country with...
The following are quotes for several U.S. currency dealers. Dealer A B C D E Japanese yen 109.03 109.06 109.04 109.08 109.06 109.10 109.05 109.07 109.07 109.09 British pounds 1.3115 1.3119 1.3118 1.3120 1.3115 1.3118 1.3116 1.3117 1.3115 1.3118 Triangular arbitrage (Inter-market) - assume that the highest bid and lowest ask for each currency are equal (so that the bid-ask spread is zero) 3. The New York spot exchange rate for Canadian dollar (USD/CAD) is 1.2146 and the spot exchange...
Can you explain why there are changes in the values and what the
negative means? What do you think the market is saying about these
changes?
FOREIGN EXCHANGE MARKET AS OF THURSDAY 8:05PM Currencies Value: % Change LAST CHANGE %CHG Euro (EUR/USD) 1.1870 0.0023 0.19 Japanese Yen (USD/JPY) 104.55 -0.18 -0.17 U.K. Pound (GBP/USD) 1.3118 0.0023 0.18 Swiss Franc (USD/CHF) 0.9084 -0.0005 -0.06 Chinese Yuan (USD/CNY) 7.0088 0.0000 0.00 Canadian $ (USD/CAD) 1.3432 0.0008 0.06 Mexican Peso (USD/MXN) 22.0404 0.0108...
DQuestion 36 2 pts The following table shows the number of U.S. dollars required to buy one British pound and the number of U.S. dollars required to buy one euro between February 1, 2016, and September 1, 2016: U.S. Dollars Required U.S. Dollars to Buy 1 British Pound 1.429 Required to Buy 1 Euro 1.1092 Date February 1, 2016 March 1, 2016 1.425 April 1, 2016 1.432 May 1, 20161.452 June 1, 2016 1.420 July 1, 20161.313 August 1, 2016...
Can someone help me with this queshtion I do not understand it
for anything. I been struggling with 2 days and its really
confusing. Its only one queshtion but has 2 parts I need to shift
the curves in the graph and answer the question down but its really
tricky. Can anyone help me. This was the only way I can post it. It
starts from where it says IT STARTS HERE.
NAFTA: Breaking Up Is Hard to Do
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