Professional Documents
Culture Documents
Assuming that the dollar price remains unchanged, what will be the price of the product in the United Kingdom if the pound is devalued from $5 to $4? Correct answer: C American product sold in UK for 100 it cost US$500 under the old exchange rate where 1 = $5. New exchange rate: 1 = $4 American product which costs US$500 (dollar price remains unchanged), will now cost 125 = x 500.