Problems

These problems are available in MyFinanceLab.

  1. Foreign exchange and commodity prices . While traveling in the following countries, you see twenty-ounce plastic bottles of Coca-Cola. You know the price in the United States for a Coke is $1.09, but the countries have the following prices:

    • Canada: C$1.50

    • Japan: ¥125

    • England: £0.60

    • European Union: €0.90

    What is the implied exchange rate for U.S. dollars and these four currencies?

  2. Foreign exchange and commodity prices . While traveling in the following countries, you occasionally resort to U.S. food. You pay the following prices for a Big Mac:

    • India: 210 rupees

    • Kuwait: 1.39 dinars

    • Sweden: 34.90 kronor

    • Ukraine: 133 rubles

    If the price of a Big Mac is $4.59 in the United States, ...

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