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How will a change in the exchange rate affect your firm

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Reference no: EM132346142

You work for a refinery, which turns crude oil into many different petroleum products, from jet fuel to gasoline, which are then sold to world markets. You have the option of purchasing crude oil from U.S. sources or from various foreign countries. You must purchase crude oil in order to make products that you can sell in the United States or in other countries.

  • How will a change in the exchange rate affect your firm?
  • What will happen to your price and quantity?
  • How can you profit from future shifts in the exchange rate?
  • How can we predict future changes in the exchange rate?

Reference no: EM132346142

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