Oranges are the only good producedin the us and spain. 1 ton of orangescost $310 in the us, and200euros in spain. the nominal exchange rate is $1.55 per euro.
a. calculate the real exchange rate(e)from the us's perspective. intuitively, what does thisnumber represent?
b. now supposethat one ton of oranges costs 150 euros in spain, and everything is the same asabove. explain if, and how you can make a profit in this situation. what would you expect tohappen to the price of oranges in the us and spain if other people also followed your strategy? assuming that transportation costs are zero, and that all goods are tradable, what does thisimply about the real exchange rate, e?

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)