Exporter A offered woolen blanket at price USD 1000 M/T CIFC 3% Hamburg. If the freight costs is USD 80 per M/T, and insurance premium is USD 10 per M/T, the purchasing price of the product is RMB 4000 per M/T, the domestic direct and indirect costs per M/T will be account for 15% of purchasing price, please calculate the total costs of export, the net income from the export and the exporting conversion cost of foreign exchange. If the current exchange rate is 6.5 RMB/USD, is it profitable from the export?

Exporter A offered woolen blanket at price USD 1000 M/T CIFC 3% Hamburg. If the freight costs is USD 80 per M/T, and insurance premium is USD 10 per M/T, the purchasing price of the product is RMB 4000 per M/T, the domestic direct and indirect costs per M/T will be account for 15% of purchasing price, please calculate the total costs of export, the net income from the export and the exporting conversion cost of foreign exchange. If the current exchange rate is 6.5 RMB/USD, is it profitable from the export?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 46CTQ: Is it legitimate to impose higher safety standards on imported goods that exist in the foreign...

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