How currency exchange rate can affect the position

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Reference no: EM13710995

The following table shows the price of a unit of Gas and Oil in two countries, Saudi Arabia and United Arab Emirates.

 

KSA

UAE

Gas

50 SAR

70 AED

Oil

60 SAR

80 AED

A: Use the information that you beentaught in ECON 271 class to explain how currency exchange rate can affect the position of Kingdom of Saudi Araba towards its import and exports of Gas and Oil.  

B: Use your finding in section A to explain why some country such as Japan want to maintain their exchange rate at this level.

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1. The deadline to submit this quiz is 25th May 2015. No submitting will be accepted after this date.

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Reference no: EM13710995

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