4. Study Questions and Problems #4Suppose the United States imposes a tariff of 4% on foreign automobiles. If a foreign automobile costs $40,000, the amount of the tariff equalsmillion.Sper car. If 30,000 foreign cars are imported, then the total revenue raised for the U.S. Treasury is STrue or False: Imposing tariffs on foreign goods can lead to retaliatory tariffs being put on domestically produced goods.TrueO False

(4) Given, Tariff rate = 4 % = 4 / 100 = 0.04Cost of a foreign automobile = $ 40000 Tariff per car…

Answered: 4. Study Questions and Problems #4…

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter2: International Flow Of Funds

Section: Chapter Questions

Problem 15QA

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3. If the price of a pair of shoes in is $80, the price of in Germany is 1.6 the U.S. the same pair of shoes is the exchange US/EURO, the euro is €40, and rate of would make American goods cheaper to 4. A devaluation the U.S. dollar domestic buyers? True or False. Support your answer. 5. If the the dollar buys dollar rises against euro, euros.
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Chapter 18, Question 2. Was incorrect the first time. Attached is a similar question with answers
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Suppose Mexico is a major export market for your US.-based company and the Mexican peso appreciates drastically against the U.S. dollar. This means A. your company's products can be priced out of the Mexican market, as the peso price of American imports will rise following the peso's fall. 8 your firm will be able to charge more in dollar terms while keeping peso prices stable. C. your domestic competitors will enjoy a period of facing lessened price competition from Mexican imports. D both b and c are correct

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