Question: Suppose Namibia only trades with the countries given below. Partner Trade volume ($000's) 1.South Africa 4,011,950 2. United Kingdom 1,056,915 3.Netherlands 223,960 4.China 3,212,700 5.

Suppose Namibia only trades with the countries given below.

Partner Trade volume ($000's) 1.South Africa 4,011,950 2. United Kingdom 1,056,915 3.Netherlands 223,960 4.China 3,212,700 5. United States 320,370

Country Name Namibia Netherlands South Africa United Kingdom United States China 2015 128.9048 109.1832185 130.2686073 110.9580174 108.695722 114.9221 2016 137.5772 109.5289654 138.8593066 112.0769373 110.0670089 117.2206 2017 146.0299 111.0420628 146.0537215 114.9435916 112.4115573 119.0881

2018 152.2925 112.9336621 152.6328245 117.5790642 115.1573032 121.5589

2019 157.9684 115.9079949 158.9279375 119.6227113 117.2441955 125.0832

Bilateral exchange rate for Namibian dollar

USD GBP Euro Yuan 2015 12.67216 19.39069 14.07145 2.018231

2016 14.66225 19.74458 16.21643 2.205355

2017 13.30542 17.12451 14.99579 1.968538

2018 13.15025 17.58968 15.7284 1.995214

2019 14.4368 18.42559 16.16754 2.090446 Use the given information to answer the following questions: 1) Calculate the nominal exchange rate index for each currency. (5marks) 2) Calculate the PPP implied exchange rates for all currencies. (5 marks) 3) Calculate the nominal effective exchange rate index for the Namibian dollar. (5 marks) 4) Calculate the bilateral real exchange rate for each currency. (5 marks) 5) Calculate the real effective exchange rate index for the Namibian dollar. (5 marks)

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