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11 Aug 2018
Consider the following three countries that are assumed to be the only trade partners with the U.S: Canada (CA), Mexico, Switzerland (SW) and Iceland (IC). X = Exports and M= imports to and from the U.S. CA = Canadian Dollar, Pesos= Mexican Pesos, SW = Swiss Francs. IC = Icelandic currency.
XCA = 2000, MCA = 788; XMX= 1500; MMX = 650; XSW= 1650; MSW = 500 XIC= 1400; MIC = 850
Please determine the weights for each country.
What will be the effective exchange rate for the U.S dollar in 2014 if the exchange rates were 1.05 CA/$ in 2012 and 0.905 CA/$ in 2014; 50 Pesos/$ in 2012 and 55 Pesos/$ in 2014. 12 SW/$ in 2012 and 12.50 SW/$ in 2014; 14.55 IC/$ in 2012 and 14 IC/$ in 2014?
Interpret your results.
Consider the following three countries that are assumed to be the only trade partners with the U.S: Canada (CA), Mexico, Switzerland (SW) and Iceland (IC). X = Exports and M= imports to and from the U.S. CA = Canadian Dollar, Pesos= Mexican Pesos, SW = Swiss Francs. IC = Icelandic currency.
XCA = 2000, MCA = 788; XMX= 1500; MMX = 650; XSW= 1650; MSW = 500 XIC= 1400; MIC = 850
Please determine the weights for each country.
What will be the effective exchange rate for the U.S dollar in 2014 if the exchange rates were 1.05 CA/$ in 2012 and 0.905 CA/$ in 2014; 50 Pesos/$ in 2012 and 55 Pesos/$ in 2014. 12 SW/$ in 2012 and 12.50 SW/$ in 2014; 14.55 IC/$ in 2012 and 14 IC/$ in 2014?
Interpret your results.
Trinidad TremblayLv2
13 Aug 2018
