A car sold at AUD35, 000 in Australia and also exports to Singapore. The AUD appreciated by 25% relative to the Singaporean dollar (SGD) from SGD1/AUD to SGD1.25/AUD. However, in Singapore, the price of the car is AUD38, 000

. i. How much should the car have been sold in Singapore given the depreciation of SGD?

ii. What is the degree of exchange rate pass through?

and  What is the cross rate between the Pula and the Zloty i.e. BWP/PLN? Assume that the Polish currency (called Zloty and denoted PLN) is worth AUD $0.32. The Australian dollar is worth 0.7 Euros (EUR). An Australian dollar can be exchanged for 8 Botswana Pula’s (denoted BWP).

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I The exchange rate between Australian dollarsAUD and Singapore dollarsSGD has appreciated from 1SGDAUD to 125SGDAUD implying that now the value of ea... View the full answer