Business, 24.03.2020 05:21 jared5491

Assume the United States has the following import/export volumes and prices. It undertakes a major "devaluation" of the dollar, say 18% on average against all major trading partner currencies. What is the pre-devaluation and post-devaluation trade balance

Answers: 3

Show answers

Answers

Answer from: issaaamiaaa15

The pre-devaluation trade balance is -$880 while the post-devaluation trade balance is -$1,398.4.

Step-by-step Explanation:

Step 1: Value Assumptions

Assuming the following import/export volumes and prices:

Initial spot exchange rate ($/fc) 2

Price of exports, dollars 20

Price of imports, foreign currency (fc) 12

Quantity of exports, units 100

Quantity of imports, units 120

Percentage devaluation of the dollar 18%

Price elasticity of demand, imports -0.9

Step 2: Calculation of Pre-Devaluation Trade Balance

Revenue from exports = Quantity of exports x Price of exports

= 100 x $20

= $2,000

Expenditure on imports = Quantity of imports x Price of imports x Initial spot exchange rate

= 120 x $12 x 2

= $2,880

Pre-devaluation trade balance = Revenue from exports - Expenditure on imports

= $2,000 - $2,880

= -$880

Step 3: Calculation of Post-Devaluation Trade Balance

Revenue from exports = Quantity of exports x Price of exports

= 100 x $20

= $2,000

Expenditure on imports = Quantity of imports x Price of imports x New spot exchange rate

= 120 x $12 x 2(1.18)

= $3,398.4

Post-devaluation trade balance = Revenue from exports - Expenditure on imports

= $2,000 - $3,398.4

= -$1,398.4

Answer from: Quest

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

hope it

Answer from: Quest

Took the words right out of my fingers

Another question on Business

Business, 22.06.2019 02:30

You have learned that there are many ethical concerns surrounding genetic research, and it's important to be familiar with them. for this project, you will write a persuasive essay about an ethical question in biotechnology. directions the goal of a persuasive essay is to convince people to agree with you. it is important to support your opinion with facts. a persuasive essay is not simply a description of your beliefs. be sure to organize your information, give clear examples, and build your argument carefully. read the following genetics topics below. choose a topic and then decide what side you are on. remember that there is no "right" or "wrong" side. ethical questions often have many points of view. research your topic and write a 400 word persuasive essay. topic 1: should insurance companies have the right to learn the genetic profiles of the people they insure? topic 2: should employers have the right to learn the genetic profiles of the people they hire? are there special considerations for employees in jobs in which there is a high risk to others, such as airline pilots, doctors, or bus drivers? topic 3: should scientists who identify genes and create new genetic engineering techniques have the right to patent their methods for their own profit?

Answers: 1

Answer

Business, 22.06.2019 11:10

How much are you willing to pay for a zero that matures in 10 years, has a face value of $1,000 and your required rate of return is 7%? round to the nearest cent. do not include a dollar sign in your answer. (i.e. if your answer is $432.51, then type 432.51 without $ sign)

Answers: 1

Answer

Business, 22.06.2019 14:50

One pound of material is required for each finished unit. the inventory of materials at the end of each month should equal 20% of the following month's production needs. purchases of raw materials for february would be budgeted to be:

Answers: 2

Answer

Business, 22.06.2019 17:10

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)

Answers: 3

Answer

You know the right answer?

Assume the United States has the following import/export volumes and prices. It undertakes a major "...

Questions