6. Assume that the United Arab Emirates has the following import/export volumes and prices. It undertakes a major "devaluation" of the UAE Dirham (AED) by 6% on average against all major trading partner currencies. What is the pre-devaluation and post-devaluation trade balance? Assumptions Initial cross exchange rate, AED/€ Price of exports, (AED). Price of imports, (€) Quantity of exports, units Quantity of imports, units Percentage devaluation of the AED 4.20 100.0000 112.0000 300 200 Values 6.00%
6. Assume that the United Arab Emirates has the following import/export volumes and prices. It undertakes a major "devaluation" of the UAE Dirham (AED) by 6% on average against all major trading partner currencies. What is the pre-devaluation and post-devaluation trade balance? Assumptions Initial cross exchange rate, AED/€ Price of exports, (AED). Price of imports, (€) Quantity of exports, units Quantity of imports, units Percentage devaluation of the AED 4.20 100.0000 112.0000 300 200 Values 6.00%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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6. Assume that the United Arab Emirates has the following import/export volumes and prices. It
undertakes a major "devaluation" of the UAE Dirham (AED) by 6% on average against all major
trading partner currencies. What is the pre-devaluation and post-devaluation trade balance?
Transcribed Image Text:6. Assume that the United Arab Emirates has the following import/export volumes and prices. It
undertakes a major "devaluation" of the UAE Dirham (AED) by 6% on average against all major
trading partner currencies. What is the pre-devaluation and post-devaluation trade balance?
Assumptions
Initial cross exchange rate, AED/€
Price of exports, (AED).
Price of imports, (€)
Quantity of exports, units
Quantity of imports, units
Percentage devaluation of the AED
4.20
100.0000
112.0000
300
200
Values
6.00%
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