## [answered] b) Determine which account of the Balance-of—Payments is

b) Determine which account of the Balance-of?Payments is affected by each of the following transactions. (E. g. Current Account ? Transfers) (2 marks each) (i) A local firm ships US\$80 million of merchandise to China. (ii) National Commercial Bank, a local company, pays US\$1 million in dividends to foreign shareholders. (iii)A German company builds a manufacturing facility in your country. (iv)A local resident purchases a retirement condo in Florida for US\$10 million. (V) You travel to the United States for holiday and spend US\$500 (vi)You invest in the South Korean stock market by buying US\$500 in stock. Consider three countries Hungary, Mexico and the United States, which sell identical t-shirts. If the price of the t-shirt is 500 forint, 20 pesos and US\$2. Calculate The purchasing power parity exchange rate between (i) Mexico and the US. (2 marks) (ii) Hungary and the US. (2 marks) Suppose the current exchange rate between the Mexican peso and the US. dollar is 12 peso = US\$l and the exchange rate between the Hungarian forint and the US. dollar is 215 forint = US\$l. Based on the PPP calculations is part a, what do you expect to happen to the exchange rate between: (i) Mexico and the US. (2 marks) (ii) Hungary and the US. (2 marks)
This text was automatically generated from the attachment. Please refer to the attachment to view this question.
This question was created from Worksheet 2 (covers units 6 to 10) UPDATED.pdf https://www.aceyourstudies.com/file/17990606/Worksheet-2-covers-units-6-to-10-UPDATEDpdf/?focusQaId=10087356

Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 18, 2020

Solution~0001005394.zip (25.37 KB)

Buy this answer for only: \$15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 18, 2020

EXPERT

Tutor

ANSWER RATING

### Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.