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stiv31 [10]
3 years ago
7

Review the table below. Note the exchange rates for dates in January of 2008 and 2013. You will use the information in the table

and what you learned in the lesson to answer the questions that follow.
2008 U.S. currency exchange rate 2013 U.S. currency exchange rate
Canada (Canadian dollar, or CAD) U.S. $1 = 1.00 CAD U.S. $1 = 0.99 CAD
India (Indian rupee, or INR) U.S. $1 = 39.41 INR U.S. $1 = 54.80 INR
European Union Eurozone (euro, or EUR) U.S. $1 = 0.69 EUR U.S. $1 = 0.76 EUR
South Africa (South African rand, or ZAR) U.S. $1 = 6.78 ZAR U.S. $1 = 8.46 ZAR
Source: x-rates.com
Write a paragraph that explains why a traveler will need to visit a currency exchange. Include how exchange rates are determined.
A. You have $25 in the United States. Imagine you are visiting India in 2013 to check out new products. How much would your $25 be in Indian rupees? (Be sure to show your work.)

B. You read a news article about a great new invention in Canada. You think maybe you want to visit Canada instead of India in 2013. How much would your $25 be in Canadian dollars? (Be sure to show your work.)
You can buy certain supplies in the European Union or in South Africa. For the moment, ignore other factors that can affect price. Would it be cheaper to buy your supplies in the European Union or in South Africa? Write a complete paragraph to explain your answer.
Imagine your business sells tablets made in India. Would it have been cheaper to buy the product in 2008 or in 2013? Write a complete paragraph to explain your answer.
Geography
1 answer:
Sindrei [870]3 years ago
6 0
          2008                                          2013
U.S. $1 = 1.00 CAD               U.S. $1 = 0.99 CAD
U.S. $1 = 39.41 INR              U.S. $1 = 54.80 INR
U.S. $1 = 0.69 EUR               U.S. $1 = 0.76 EUR
<span>U.S. $1 = 6.78 ZAR                U.S. $1 = 8.46 ZAR

When you travel, it is better to visit a currency exchange and have your foreign currency exchange into the local or national currency of the country you are visiting. Cash transactions will be easily done once local currency is used. You don't need to worry about the exchange rate every time you purchase a commodity.

2013: US$ 1 = 54.80 INR

$25 x 54.80 INR/$1 = 1,370 INR

2013: US$ 1 = 0.99 CAD

$25 x 0.99CAD/$1 = 24.75 CAD

It would be cheaper to buy products in South Africa than in European Union. This is because the US dollar has a higher value in South Africa than in the European Union.

It would be cheaper to buy the product in 2008 because the value of US dollars in India is lower compared to its value in 2013.

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