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An exchange rate is the price of currency. Google exchange rates for the following countries: Canada, Mexico, Germany, and Japan. What do you notice about each exchange rate in regards to the value of the American dollar? How important would exchange rate be when deciding to "go global?"
Consider the following business scenarios. Imagine yourself as small business owner who uses e-commerce. What happens if the dollar increases in value (relative to other currencies)? What happens if the dollar decreases in value (relative to other currencies)? Consider outstanding orders and payments
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Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX? Compute the surplus received by consumers and producers.
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