The exchange rate and the balance of payments

Assignment Help Business Management
Reference no: EM131265974

The Exchange rate and the balance of payments

Use the following data to work Problems 1 to 3 The U.S. dollar exchange rate increased from $0.96 Canadian in June 2011 to $1.03 Canadian in June 2012, and it decreased from 81 Japanese yen in June 2011 to 78 yen in June 2012

1. Did the U.S. dollar appreciate or depreciate against the Canadian dollar? Did the U.S. dollar appreciate or depreciate against the yen?

2. What was the value of the Canadian dollar in terms of U.S. dollars in June 2011 and June 2012? Did the Canadian dollar appreciate or depreciate against the U.S. dollar over the year June 2011 to June 2012?

3. What was the value of 100 yen in terms of U.S dollars in June 2011 and June 2012? Did the yen. appreciate or depreciate against the U.S. dollar over the year June 2011 to June 2012?

4. On March 30, 2012, the U.S. dollar was trading at 82 yen per U.S. dollar on the foreign exchange market. On August 30, 2012, the U.S. dollar was trading at 79 yen per U.S. dollar.

a. What events in the foreign exchange market could have brought this fall in the value of the U.S. dollar?

b. Did the events you've described change the demand for U.S. dollars, the supply of U.S. dollars, or both demand and supply in the for eign exchange market?

5. Colombia is the world's biggest producer of roses. The global demand for roses increases and at the same time Columbia's central bank in- creases the interest rate. In the foreign exchange market for Colombian pesos, what happens to

a. The demand for pesos?

b. The supply of pesos?

c. The quantity of pesos demanded?

d. The quantity of pesos supplied?

e. The peso U.S. dollar exchange rate?

Reference no: EM131265974

Questions Cloud

Define your personal opinion about stage theories in general : Discuss evidence that supports his theory as well as evidence that calls it into question. Discuss your personal opinions about stage theories in general.
What is the maximum annual maintenance expense : What is the maximum annual maintenance expense that you could afford to spend on your car over its life in order to reduce the cost of periodic major engine overhauls by $300? Assume the car has a life of nine years and overhauls occur every thre..
Explain the major components of your culture : Explain the major components of your culture. Explain the various symbols associated with your culture including their meanings.
Marketing managers of current demographic trends : Explain the importance to marketing managers of current demographic trends. - Describe how this might affect the marketing mix for the given.
The exchange rate and the balance of payments : Use the following data to work Problems 1 to 3 The U.S. dollar exchange rate increased from $0.96 Canadian in June 2011 to $1.03 Canadian in June 2012, and it decreased from 81 Japanese yen in June 2011 to 78 yen in June 2012
Find the distribution factor pitch factor and winding factor : A synchronous generator has 12 poles and 3-phase winding placed in 144 slots; the coil span is 10 slots. Determine the distribution factor, pitch factor and winding factor.
What is the marginal cost : Why the MC(marginal cost) is looks like a ''U''? When the serving is 1(no extra production) what is the marginal cost? What is the x axis(Q) looks like?
What is the electromagnetic power and torque developed : A 240 V dc motor takes 25 A when running at 945 rpm. The armature resistance is 0.24 W. Determine the no-load speed assuming negligible losses. Flux/pole is constant.
What would you advise the company to do and why : In addition to this interest cost these facilities have maintenance and staffing "fixed" costs of $1M a year. What would you advise the company to do, and why?

Reviews

Write a Review

Business Management Questions & Answers

  Part 1 requires a flow chart in ms word or ms power point

part 1 requires a flow chart in ms word or ms power point 1- 2 pages part 2 requires a 1-2 page length text about a

  Percent of the outside diameters lie between

The arithmetic mean is 19.0 inches, and the standard deviation is 2.0 inches. About 68 percent of the outside diameters lie between what two amounts?

  Why would an organization care its supervisors speak

Why would an organization care whether its supervisors speak in favor of or against union representation? Explain and justify your answer.

  Diagrams to illustrate the effects

Use four separate supply and demand diagrams to illustrate the effects of the following possible shocks on the equilibrium price and quantity of avocados. In each diagram clearly indicate the initial equilibrium price and quantity and the new equ..

  Different types ofbusinesses

There are a dozen other different types ofbusinesses in the same strip mall where my store is. Two years ago I signed a five-year lease and at about that time a Salvation Army store, half my size, opened up and began selling used clothing for chil..

  Question 1analyze as well as compare the performance of the

question 1analyze as well as compare the performance of the following two projects in terms of cost schedule and

  Political environmental affectiveness of a public leader

Explain to me how social and political environmental considerations influence the effectiveness of a public leader?

  Questions during the interview process

When ti is your turn to ask questions during the interview process? 5 questions that you would like to ask during an interview?

  Court prohibit discrimination against employees based on sex

From a purely legal perspective, should Title VII be amended to protect people based on sexual orientation? Why or why not?

  Identify a business research topic

The initial research proposal will consist of the following SIX (6) items: Identify a business research topic.  Define the research questions for the identified problem or opportunity. Select the appropriate research methodologies and techniques to u..

  How does the individual needs of the organization are met

How does the individual who is serving as a leader go about seeing that the needs of the organization are met? What advice does Powell have for the business students he is speaking to with regard to leadership?

  Compute how the audit process monitors the compliance

Compute how the audit process monitors the compliance management structure to ensure its purpose is intact.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd