1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alexgriva [62]
3 years ago
12

In Japan, suppose Honda’s export price per vehicle is ¥4,000,000 and that the exchange rate is ¥125/$. The one-year Japanese yen

interest rate is 1.0%; the one-year U.S. interest rate is 3.0%. Assume that International Fisher holds. Assuming a 60% pass-through of exchange rate changes, what would the price of a Honda be at the end of the coming year in U.S. dollars?
Business
1 answer:
NemiM [27]3 years ago
5 0

Answer:$31,379

Explanation:Applying the

Fishers international effect

1+Ic/1+Ib=S1/S0

Where Ib represents the interest rate in base country which is Japan in this case

Ic represents the interest rate in counter country in this case,US

S0 is the base spot rate or exchange rate at the moment while S1 is the spot rate at the end of the coming year

Ic =3%=0.03

Ib=1%=0.01

So=145

Substituting in the formula

1.03/1.01=S1/125

Cross multiplying

S1=125(1.03)/1.01=127.475

So price in US at spot 127.475 will be ¥4,000,000/127.475=$31,379

You might be interested in
On July​ 1, 2019, Montana Company has bonds with balances as shown below. Bonds Payable 66,000 Discount on Bonds Payable 3,800 I
Otrada [13]

Answer:

Loss on the retirement of $4,750

Explanation:

The following have the effect on the income statement which is a loss on the retirement and it amounts to $4,750

It is computed as:

Loss on retirement = Retirement value of the bonds - Issued price of the bonds

= $71,150 - $66,400

= $4,750

Working Note:

Issued Price of bonds = Face value - Discount on bonds payable

= $70,000 - $3,600

= $66,400

7 0
3 years ago
Tom lives in an apartment where he pays $8,000 a year in rent. Sarah lives in a house that could be rented for $10,000 a year. H
Misha Larkins [42]

Answer:

these housing services contribute to GDP =   $18000

Explanation:

given data

Tom pay rent = $8000

Sarah house  rented = $10,000

solution

housing services contribute to GDP is express as

housing services contribute to GDP = Tom pay rent + Sarah house rented ............1

As GDP include both rent and estimate rent owner occupy home

put here value in equation 1 we get

housing services contribute to GDP =  $8000 + $10000

housing services contribute to GDP =   $18000

5 0
3 years ago
How to access your federal reserve account?
asambeis [7]
The federal reserve account is the central bank of the United States of America. It is an independent bank in a sense that it does not need the approval of the President or any government authority to forego with their daily transactions. Only institutions have accounts in the federal reserves like commercial banks. An individual cannot access one.
4 0
3 years ago
Phone Tech, a global phone company, frequently needs to respond quickly to fast-changing consumer tastes with its smartphones. T
Elodia [21]

Answer:

The correct answer is: Organic organizational structure          

Explanation:

Organic organizations, also known as the organismic organization, is a flexible organizational structure that is capable of adapting the incorporated changes.

In such an organization, there is <u>minimum job specialization and hierarchy.</u> The workers of an organic organization have <u>no job descriptions and rigid procedures</u>. It contains <u>multi-talented workers that are capable of performing variety of tasks. </u>

Therefore, an organic organization is the most adaptive organizational structure as it can quickly adapt and respond to changes in environment.

<u>Therefore, Phone Tech is utilizing an </u><u>organic organizational structure.</u>

8 0
3 years ago
Suppose that the price of cracker jacks is 50 cents a box and the price of m&amp;ms is 25 cents a bag. if you have $10 to spend
Ahat [919]

The correct answer is 20 boxes of Cracker Jacks.

If you have $10 and the cost of the Cracker Jacks is 50 cents per box, then the maximum quantity that you can purchase is 20 boxes. This is calculated by dividing $10 by 50 cents, which equals 20.

6 0
3 years ago
Other questions:
  • Banks pay their customers interest on the money in their accounts for what reason? A. That money earns interest when the bank lo
    8·1 answer
  • Derick started a manufacturing firm of his own quite recently. His country’s government provides grants and implements policies
    12·1 answer
  • Since the requirements for privacy reach across the organization, the privacy specialist works with appropriate ____ to ensure t
    5·1 answer
  • You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangement
    7·1 answer
  • What is market power?
    11·1 answer
  • The following items are reported on a company's balance sheet: Cash $225,000 Marketable securities 115,000 Accounts receivable (
    15·2 answers
  • GASB has issued a proposed standard that would more clearly define fiduciary activities and change the categories of fiduciary f
    12·1 answer
  • Sweet Sue Foods has bonds outstanding with a coupon rate of 5.02 percent paid semiannually and sell for $1,948.34. The bonds hav
    15·1 answer
  • How important is following up with your potential employers after an interview?
    6·2 answers
  • Certain mortgage loans contain a due-on-sale clause, which gives the lender the right to terminate the loan at sale of the prope
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!