<u>Charles's prospects of economically speaking are that it depends on the value of the Chinese yuan with respect to the U.S. dollar. </u>
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Further Explanation:
Exchange rate:
The exchange rate is the rate in which two currencies are exchanged between each other. The exchange rate is decided by the government. The exchange rate is used in case of import the goods and the export of the goods. The exchange rate depends on the value of the currency if the one currency value is high as compared to the other currency value. The exchange rate is determined according to these values of currency.
Chinese Yuan is the currency of China and the U.S. dollar is the currency of the United States of America. The exchange rate between these two countries is 1 U.S. dollar is equal to 6.42 Chinese Yuan. The Chinese receive 6.42 Chinese yuan in exchange for 1 U.S. dollar.
As the bicycle is the common form of transportation in China. If Charles sells this bicycle, he is not able to travel from one place to another. The demand for the bicycle is more in china, Charles should not sell the bicycle.
Learn more:
1. Learn more about the demand curve
<u>brainly.com/question/8794304
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2. Learn more about the exchange
<u>brainly.com/question/3814456
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3. Learn more about economic pie
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Answer details:
Grade: Middle School
Subject: Economics
Chapter: Exchange rate
Keywords:
because of, high volume, bicycles, a common form of transportation, in Beijing and Shanghai, horns, market, $1 U.S. dollar = 6.42 Chinese yuan, value, prospects, exchange rate, Charles, import, export, currency.
