There is a lot of talk these days that the euro, for the first time in several
Question:
There is a lot of talk these days that the euro, for the first time in several decades, has fallen to equal value with the American dollar. Explain what the impact of the euro-dollar parity is. Explain your answer. 20 points
https://www.latimes.com/espanol/eeuu/articulo/2022-07-14/ap-explica-cual-es-el-impacto-de-la-paridad-euro-dolar
2)According to the International Fisher Effect, if Venezuela has a higher nominal rate than other countries, its inflation rate will probably increase relative to other countries, and its currency should weaken. Explain in detail. 20 points.
3) Silicon Co. has projected the Canadian dollar in the most recent period to be $0.73. The realized value of the Canadian dollar in the most recent period was $0.80. Thus, the absolute forecast error as a percentage of the unrealized value was ? Show your calculations. 20 points
4) A weak dollar would normally be expected to cause a low unemployment rate and high inflation in the US, while a strong dollar should cause a high unemployment rate and a low inflation rate in the US. Explain in detail why this is the case. effects on rates. (20 points)
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr