A certain commodity cost 0 5 pound sterling in the United Kingdom In U S denominated dollars, this same item can be purchased for 85 cents The exchange rate is 1 pound sterling $1 80 U S a Should this commodity be purchased in the United Kingdom or in the United States b If 100,000 items comprise t...

a The value of 05 pound Sterling i ...

A certain commodity cost 0.5 pound sterling in the United Kingdom. In U.S. denominated dollars, this same

Question:

A certain commodity cost 0.5 pound sterling in the United Kingdom. In U.S. denominated dollars, this same item can be purchased for 85 cents. The is 1 pound sterling = $1.80 U.S.
a. Should this commodity be purchased in the United Kingdom or in the United States?
b. If 100,000 items comprise the purchase quantity, how much can be saved in view of your answer to Part (a)?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...