Explain the likely impact of $a appreciation on non-mining

Reference no: EM13723369

Explain the likely impact of $A appreciation on non-mining sectors of the Australian economy such as manufacturing and agriculture. As part of your explanation, include a numerical example by assuming that a Japanese car imported into Australia has a constant landed price of two million yen. Assume an initial exchange rate of A$1=Yen100, and then show numerically how a strengthening $A (assume the exchange rate becomes A$1 = Yen 200), other things equal, is bad for Australian car manufacturing firms.

Reference no: EM13723369

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