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Exchange rates of the australian dollar

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Assume that Australia trades mostly with two countries only, the United States and the United Kingdom, and that 65% of the trade is conducted with the United States, 30% with the United Kingdom, and 5% with the rest of the world. The exchange rates of the Australian dollar at two points in time, 0 and 1, are as follows:

Exchange Rate:

Period 0 -AUD/USD 1.4541 AUD/GBP 2.1555

Period 1-AUD/USD 2.1555 AUD/GBP 2.5700

Reference no: EM132540463

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