1. The U.S. price of corn is $100 per ton, and the exchange rate between the U.S.dollar and the Japanese yen is ¥120 = $1.00. a) Calculate the international price of U.S. corn for Japan. b) If the exchange rate changes to ¥145 = $1.00, calculate the new international corn price for Japan. %3D %3! 2. Suppose the cost of purchasing euros (EUR) and Canadian dollars (CAD) at theairport are given by the following bid / ask price: a) EUR 1 = USD 1.16/1.22 b) CAD 1 = USD 0.81 /0.93 a) How much USD is required to purchase EUR 2,000?| b) How much USD is required to purchase CAD 1,500? c) How much USD will you get if you'd like to sell EUR 500 to the airport's currency exchange store? d) How much USD will you get if you'd like to sell CAD 500 to the airport's currency exchange store? e) Calculate the percent spread or margin for USDEUR. f) Calculate the percent spread or margin for USDCAD. 3. Using the data provided in the excel sheet, complete the following using R(please include your codes): a) On one graph, plot a line graph of the trade balance (goods) and the trade balance (goods and services) using R. Label your axes, insert a title, and summarize this plot. b) Calculate the mean, standard deviation, and range for the trade balance (goods and services) as a percent of GDP using R.
1. The U.S. price of corn is $100 per ton, and the exchange rate between the U.S.dollar and the Japanese yen is ¥120 = $1.00. a) Calculate the international price of U.S. corn for Japan. b) If the exchange rate changes to ¥145 = $1.00, calculate the new international corn price for Japan. %3D %3! 2. Suppose the cost of purchasing euros (EUR) and Canadian dollars (CAD) at theairport are given by the following bid / ask price: a) EUR 1 = USD 1.16/1.22 b) CAD 1 = USD 0.81 /0.93 a) How much USD is required to purchase EUR 2,000?| b) How much USD is required to purchase CAD 1,500? c) How much USD will you get if you'd like to sell EUR 500 to the airport's currency exchange store? d) How much USD will you get if you'd like to sell CAD 500 to the airport's currency exchange store? e) Calculate the percent spread or margin for USDEUR. f) Calculate the percent spread or margin for USDCAD. 3. Using the data provided in the excel sheet, complete the following using R(please include your codes): a) On one graph, plot a line graph of the trade balance (goods) and the trade balance (goods and services) using R. Label your axes, insert a title, and summarize this plot. b) Calculate the mean, standard deviation, and range for the trade balance (goods and services) as a percent of GDP using R.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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AGRICULTURAL ECONOMICS 452.501/502
INTERNATIONAL TRADE AND AGRICULTURE
FALL 2021
Homework Assignment 5
Thomas-Winston
Due: November 23
1. The U.S. price of corn is $100 per ton, and the exchange rate between the U.S.dollar
and the Japanese yen is ¥120 = $1.00.
a) Calculate the international price of U.S. corn for Japan.
b) If the exchange rate changes to ¥145 = $1.00, calculate the new international corn price
for Japan.
2. Suppose the cost of purchasing euros (EUR) and Canadian dollars (CAD) at theairport are
given by the following bid / ask price:
a) EUR 1 = USD 1.16/1.22
b) CAD 1 = USD 0.81 /0.93
a) How much USD is required to purchase EUR 2,000?|
b) How much USD is required to purchase CAD 1,500?
c) How much USD will you get if you'd like to sell EUR 500 to the airport's currency
exchange store?
d) How much USD will you get if you'd like to sell CAD 500 to the airport's currency
exchange store?
e) Calculate the percent spread or margin for USDEUR.
f) Calculate the percent spread or margin for USDCAD.
3. Using the data provided in the excel sheet, complete the following using R(please
include your codes):
a) On one graph, plot a line graph of the trade balance (goods) and the trade balance
(goods and services) using R. Label your axes, insert a title, and summarize this plot.
b) Calculate the mean, standard deviation, and range for the trade balance (goods and
services) as a percent of GDP using R.
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