Question

ecause of the high volume of bicycles as a common form of transportation in Beijing and Shanghai, Carl wants to sell his bicycle horns in these foreign markets. Currently, the U.S. dollar is trading at a higher rate than the Chinese yuan. Economically speaking, how are Carl's prospects

Answer 1

Answer:

It depends on the value of the Chinese yuan in relation to the dollar.

Explanation:

Carl realized that the market for bicycles and bicycle accessories may be expanding in China due to the high volume of bicycles as a common form of transportation in Beijing and Shanghai. For this reason, he believes, that his project to sell bicycle horns in the foreign market and mainly in China could be advantageous for his businesses, being able to generate a high flow of sales and a great economic revenue.

However, selling products in a foreign country will incur some expense, as some fees are required to be paid. In that case, Carl should assess whether it is really advantageous for him to enter the Chinese market. Economically speaking, Carl may consider this deal to be advantageous depending on the value of the Chinese yuan against the US dollar.