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ch4aika [34]
3 years ago
9

Because of the high volume of bicycles as a common form of transportation in Beijing and Shanghai, Charles wants to sell his bic

ycle horns to these markets. In this case, the exchange rate is $1 U.S. dollar = 6.42 Chinese yuan. Economically speaking, how are his prospects?A) Not good. The Chinese would not see value in a horn because they are accustomed to just yell at each other in traffic.B) Good because the yuan has strength against the dollar. The Chinese have 6.42 yuan to spend compared to $1 U.S. dollar.C) It depends on the value of the Chinese yuan in relation to the dollar.D) Pretty good because the U.S. dollar is down against the Chinese yuan.
Business
1 answer:
drek231 [11]3 years ago
4 0

Answer:

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

Explanation:

The exchange rate of a currency gives you a nominal value of the local currency against another foreign currency, but just by having a number doesn't mean a lot. First of all we do not know how much can you really buy with 6.42 yuans, so we are not able to know if $1 is cheap or expensive.

Assuming that the price of the horns is competitive, what can really affect this business is the fluctuations of the currency value. If the yuan appreciates against the dollar, the horns will become cheaper, but if the yuan depreciates against the dollar, the horns will become more expensive.

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A stronger euro is less favorable for:
Reptile [31]

Group of answer choices.

A. German tourists traveling abroad.

B. American tourists traveling in France.

C. Canadian firms selling in Germany.

D. Canadian investors with money investments in Germany.

Answer:

B. American tourists traveling in France.

Explanation:

A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country.

For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.

In this context, a stronger euro is less favorable for American tourists traveling in France because the currency of the Americans, which is the U.S dollars would exchange at a far lesser rate to the euros.

However, a stronger euro would be more favorable for German tourists that are traveling abroad, Canadian firms that trade or sells its products in Germany, and Canadian investors who are having money investments in Germany.

Note: Euro is the official currency (legal tender or money) of Germany.

5 0
2 years ago
the market price of northern mills stock has been relatively volatile and you think this volatility will continue for a couple m
taurus [48]

The  answer is $120.

Explanation: The computation of the net profit or loss is shown below: Before that we have to determine the following calculations

Net Profit from call option is = (Gain from Exercising Call Option - Option Premium paid) × Size of the Contract

= (($47 - $42) - $2.60) × 100 Shares

= $240

Net Loss from put option is

= (Option Premium paid) × Size of the Contract

= $1.20 × 100 Share

= $120

So, the net profit is  = Net Profit from Call Option - Net loss from Put Option= $240 - $120

= $120

To learn more about  net profit, click here.

brainly.com/question/22024991

#SPJ4

5 0
11 months ago
When Anhueser Busch InBev sells Budweiser beer made in St. Louis, MO, to Germany, the sales of its product would be classified a
kvasek [131]

Answer:

Export.

Explanation:

When a company sells its assets to a buyer in another country it is considered an export as the company is no longer considered an asset of the country of origin.

So when Anhueser Busch InBev sold Budweiser beer made in St. Louis, MO, to Germany, it carried out a United States export to Germany.

6 0
3 years ago
Cost-benefit analysis attempts to A. compare the real worth, rather than the market values, of various goods and services. B. co
statuscvo [17]

Answer:

<u>Letter D is correct. C</u>ompare the benefits and costs associated with any economic project or activity.

Explanation:

A cost-benefit analysis is a business approach used to ascertain the main strengths and weaknesses of an organization as a whole. This includes the process of all organizational activities, transactions, and other substantial requirements for the company. The purpose of this approach is to compare the benefits and costs associated with the organization's activities and find ways to reduce costs, time and maximize earnings.

8 0
3 years ago
Which of the following would be the most appropriate identifier for a memory location that will store the amount of rainfall for
tino4ka555 [31]

amountOfRain would be the most appropriate identifier for a memory location that will store the amount of rainfall for a given period of time.

<u>Explanation:</u>

A set of characters in a sequence that helps in the identification  any value or a set of set is known as identifiers. Identifiers are unique in nature. A character sequence that is given for storing a set of data should not be given to store another set of data.

They are useful in referencing a variable from which the data or values that are contained in that particular variable can be easily retrieved. For example a variable can be indicated by an identifier totalAmount in which the value stored  is 56000. The starting name of the variable should be given in smaller case letter and second name should be in capital letter.  For instance if you are going to store the value 45 in the variable amountoftime then the variable name should be given as amountOfTime.

4 0
2 years ago
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