Assuming price was the sole consideration in exporting and importing (a neglecting transport costs and taxes) then the Philippines can _____. O a. export coconut juice in Q2 and Q4, import it in Q1 and Q3 O b. export coconut juice in Q2, import it the rest of the time O c. export coconut juice in Q1 and Q3, import it in Q2 and Q4 O d. import coconut juice in Q2, export the rest of the time
Assuming price was the sole consideration in exporting and importing (a neglecting transport costs and taxes) then the Philippines can _____. O a. export coconut juice in Q2 and Q4, import it in Q1 and Q3 O b. export coconut juice in Q2, import it the rest of the time O c. export coconut juice in Q1 and Q3, import it in Q2 and Q4 O d. import coconut juice in Q2, export the rest of the time
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:A locally produced brand of coconut juice is priced at $100 per bottle. A
perfect substitute of that coconut juice is produced in India and priced at
*147. Suppose the exchange rates of Philippine peso to Indian rupees in 2020
are the following:
Period
Q1
Q2
Q3
Q4
Exchange Rate (/)
0.62
0.69
0.65
0.67
Assuming price was the sole consideration in exporting and importing (and
neglecting transport costs and taxes) then the Philippines can
O a. export coconut juice in Q2 and Q4, import it in Q1 and Q3
export coconut juice in Q2, import it the rest of the time
O b.
O C.
export coconut juice in Q1 and Q3, import it in Q2 and Q4
d. import coconut juice in Q2, export the rest of the time
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