You are a USA Manager of Apple Phone (iPhone). Your company Apple export and market iPhone in Malaysia. Malaysia currency is Ringgit and USA currency is US Dollar. The current exchange Rate is: 4 Ringgit = 1 US Dollar. In 2015 the rate was as 4.25 Ringgit = 1 US Dollar. In 2018 the rate was as 3.70 Ringgit = 1 US Dollar. In 2022 the rate is as 4.10 Ringgit = 1 US Dollar. You (your company Apple) exported iPhone to Malaysia as follows in million: In 2015 Total Export = 55m Ringgit. In 2018 Total Export = 77m Ringgit. In 2022 Total Export = 40m Ringgit. Now you calculate your profit in these three time points. When you earn more and when you earn less. How does fluctuation of exchange rate of these two currencies (USD and RM) affect your profit?
You are a USA Manager of Apple Phone (iPhone). Your company Apple export and market iPhone in Malaysia. Malaysia currency is Ringgit and USA currency is US Dollar. The current exchange Rate is: 4 Ringgit = 1 US Dollar. In 2015 the rate was as 4.25 Ringgit = 1 US Dollar. In 2018 the rate was as 3.70 Ringgit = 1 US Dollar. In 2022 the rate is as 4.10 Ringgit = 1 US Dollar. You (your company Apple) exported iPhone to Malaysia as follows in million: In 2015 Total Export = 55m Ringgit. In 2018 Total Export = 77m Ringgit. In 2022 Total Export = 40m Ringgit. Now you calculate your profit in these three time points. When you earn more and when you earn less. How does fluctuation of exchange rate of these two currencies (USD and RM) affect your profit?
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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You are a USA Manager of Apple Phone (iPhone). Your company Apple export and market iPhone in Malaysia. Malaysia currency is Ringgit and USA currency is US Dollar.
The current exchange Rate is: 4 Ringgit = 1 US Dollar.
- In 2015 the rate was as 4.25 Ringgit = 1 US Dollar.
- In 2018 the rate was as 3.70 Ringgit = 1 US Dollar.
- In 2022 the rate is as 4.10 Ringgit = 1 US Dollar.
You (your company Apple) exported iPhone to Malaysia as follows in million:
- In 2015 Total Export = 55m Ringgit.
- In 2018 Total Export = 77m Ringgit.
- In 2022 Total Export = 40m Ringgit.
Now you calculate your profit in these three time points. When you earn more and when you earn less. How does fluctuation of exchange rate of these two currencies (USD and RM) affect your profit?
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