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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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