Assume the New Taiwan dollar (NTS) value is tied to the Canadian dollar (CAD) and willremain tied to the Canadian dollar.Last month, a NTS = 0.35 Singapore dollars. Today, a NTS = 0.25 Singapore dollars. Assumethat there is much trade in the computer industry among Singapore, Taiwan, and Canada and thatall products are viewed as substitutes foreach other and are of about the same quality. Assumethat the firms invoice their products in their local currency and do not change their prices.a. Will the computer exports from the Canada to Taiwan increase, decrease, or remain the same?Briefly explain. (2%6)b. Will the computer exports from Singapore to the Canada increase, decrease, or remain thesame? Briefly explain.

When a country’s currency depreciates, there is a rise in exports and a fall in imports. When a…

Answered: Assume the New Taiwan dollar (NTS)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6
In our pretend world there are two countries - Chile and Switzerland - that are engaged in trade. The firm Switzerland Chocolates Express sells Boxes of chocolate (a good) in Chile. Each Box of Chocolates sells for 6500 Chilean pesos in Chile. In Switzerland, each box of chocolates 11 Swiss Franc to produce. Assume that the firm has 1 million boxes of chocolate to sell. How much money (in Swiss Franc) would the firm make (or lose) on the sale at the following exchange rates: Rate 1: 550 Pesos per Swiss Franc Rate 2: 0.0015 Swiss Franc Per Chilean Peso
Peru is growing relatively quickly and has begun to attract large inflows of foreign direct investment. While Peru relishes the benefit of the inflows, it is concerned about the potential negative effects if the foreign investors pull out their investments quickly. One particular reason for Peru to be concerned is that its banks have taken out large loans denominated in U.S. dollars and European euros from foreign banks. If the foreign direct investment is withdrawn quickly from Peru, what will be the effect on each of these items? A. Peru's money supply - B. Peru's exchange rate with other countries - C. Peru's exports - D. Peru's trade deficit - Answer Bank: No Effect, Increase or Decrease
You work for the Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce. Your supervisor gives you the following U.S. International Transactions Accounts for the Year 20XX (figures are in billions of dollars) and wants it reported in a coherent fashion in accordance with accepted conventions: Investment income payments (27.3); Export of goods 80.6; Balance of services 5.1; Capital outflow (44.5); Imports of goods (110.9); Change in Official Reserves 2; Investment income receipts 24.7; Capital inflow 73.6; Net unilateral transfers (3.3). (a) He wants you to compute the balances of trade, current account, capital account and statistical discrepancy. (b) He also wants you to find out (based on your calculation) if the U.S. is a net debtor or a net creditor and why
Which of the following is most likely to cause a leftward shift of the demand curve for the Chinese yuan in exchange for the U.S. dollar? An increase in the demand for U.S. products in China A decrease in the demand for Chinese products in the United States An increase in the demand for Chinese products in the United States A decrease in the demand for U.S. products in China
The Tourism Promotion Council of Mexico (CPTM) is convinced that the Country will have income from international tourists of less than 15.55 billion dollars, this is almost 39 percent less than what it registered in the previous year, when it closed with 21 thousand 614 million dollars. In which of the following options is this decrease in foreign exchange for tourism accounted for? a) Consumption b) Government expenses c) Net exports d) Investments
2&&&& 2 ०प Q U d p C b & B
PRICE (Yen per dollar) 9. Study Questions and Problems #9 The following graph depicts the supply and demand curves for U.S. dollars in the foreign exchange market. Suppose that real interest rates in the United States rise. On the graph, shift either the supply of dollars curve, the demand for dollars curve, or both curves to best reflect the given scenario. D QUANTITY OF DOLLARS (Millions per day) S D If real interest rates in the United States rise, the U.S. dollar S ?
Suppose that Argentina's dollar-denominated external assets and liabilities are $10 billion and $100 billion, respectively, and its Argentine peso-denominated external assets are 70 billion pesos (P) and peso-denominated external liabilities are 50 billion pesos (P). Suppose further that Argentina fixes its exchange rate at P1.5 = $US1. a) What is the peso value of Argentina's total external wealth? Is it a net debtor or creditor? b) Suppose that Argentina changes its exchange rate to P2.3 = $US1. How does the external wealth of Argentina change when this occurs?
Why are aircraft one of the United States' greatest exports? The demand for aircraft is high. The US has a great deal of technological knowledge. The American dollar is cheap compared to other currencies.
53. Tax Rate (%) d C b B 0 Tax Revenue ($) The above curve is known as the: O Taylor rule. O Okun Curve. O Laffer Curve. O Phillips Curve.
What is meant by the balance of trade? 10 13 16 V 19 22 25 14 17 20 23 12 15 18 21 24 a It is the measurement of the barter of products for products. b) It is the relative value of one currency to that of another. ( c) It is a measure of the total flow of money into or out of a country. ) d) It is a measure of the difference between exports and imports.

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