The price for a device to do a digital-based design in the United States is USD 185. For the same device in Indonesia, the price is Rp. 2,500,000. If the Rupiah exchange rate per USD is Rp. 13,944, then calculate what the real exchange rate is? Give conclusion whether the price of this device is more expensive / cheaper in Indonesia!
The price for a device to do a digital-based design in the United States is USD 185. For the same device in Indonesia, the price is Rp. 2,500,000. If the Rupiah exchange rate per USD is Rp. 13,944, then calculate what the real exchange rate is? Give conclusion whether the price of this device is more expensive / cheaper in Indonesia!
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter11: Foreign Exchange, Trade, And Bubbles
Section: Chapter Questions
Problem 2MC
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The price for a device to do a digital-based design in the United States is USD 185. For the same device in Indonesia, the price is Rp. 2,500,000. If the Rupiah exchange rate per USD is Rp. 13,944, then calculate what the real exchange rate is? Give conclusion whether the price of this device is more expensive / cheaper in Indonesia!
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