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sweet-ann [11.9K]
3 years ago
8

The exchange rate between the British pound and the U.S. dollar is 2. In England, the price level is 1.0 and the one-year intere

st rate is 20%. In the United States, the price level is .8 and the one-year interest rate is 8%. The inflation rate in both countries is zero. Refer to the information above. The real exchange rate (from the United States' perspective) is _________.
a. .625.
b. .8.
c. 1.6.
d. 2.0.
e. none of the above
Business
1 answer:
kifflom [539]3 years ago
8 0

Answer:

C) 1.6

Explanation:

The real exchange rate is calculated by multiplying the nominal exchange rate by the price level of the countries:

nominal exchange rate = 2 US dollars per British pound = $2/£

real exchange rate = $2/£ x (US price level / British price level) = $2/£ x 0.8 = $1.6/£

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Answer:

The correct answer is True.

Explanation:

A stability strategy seeks to remain as long as possible in the maturity phase (or stability) of the company, reaping the fruits of the investments made. A survival strategy seeks to survive in a hostile environment, while retaining its market share.

In general, stability and survival strategies are defensive strategies, that is, strategies that seek to maintain the competitive position achieved by the company. This fact does not mean that the company cannot grow; in fact, on many occasions, to maintain market share growth is necessary (sustainable growth). In other cases, these strategies involve a decrease (organizational downsizing, outsourcing or outsourcing of activities).

These strategies are designed for the level of corporate strategy, although they can also be adopted for competitive or business strategies, as they allow the analysis for each business or activity to which the company is engaged.

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3 years ago
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Answer:

$68,600

Explanation:

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3 years ago
Sunland Company compiled the following financial information as of December 31, 2017: Service revenue $842000 Common stock 17700
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555,000

Explanation:

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Everyday fresh is a retail outlet that sells its products at a discounted rate. it expands its product base to a new division th
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