Chapter 11, Problem 11.2E

a

To determine

Introduction: A change in the exchange rate is referred to as the strengthening or weakening of currency against others. The strengthening of U.S. dollars against another currency will make exports expensive and the weakening of the dollar is unfavorable for U.S. companies purchasing goods from other countries.

The current exchange rate for each of the cells in the given matrix for CA’s business trip to Canteberry

b

To determine

Introduction: A change in the exchange rate is referred to as the strengthening or weakening of currency against others. The strengthening of U.S. dollars against another currency will make exports expensive and the weakening of the dollar is unfavorable for U.S. companies purchasing goods from other countries.

To discuss: Whether the U.S. dollar strengthened or weakened relative to the florin during C’s stay Canteberry

c

To determine

Introduction: A change in the exchange rate is referred to as the strengthening or weakening of currency against others. The strengthening of U.S. dollars against another currency will make exports expensive and the weakening of the dollar is unfavorable for U.S. companies purchasing goods from other countries.

The gain or loss on the 100florins he held during his visit, explain your answer.