toyota's pass-through. assume that the export price of a toyota corolla from osaka, japan, is ¥2 comma 200 comma 000. the exchange rate is ¥87.57/$. the forecast rate of inflation in the united states is 2.3% per year and in japan it is 0.0% per year. use this data to answer the following questions on exchange rate pass-through. a. what was the export price for the corolla at the beginning of the year expressed in u. s. dollars? b. assuming purchasing power parity holds, what should be the exchange rate at the end of the year? c. assuming 100% exchange rate pass-through, what will be the dollar price of a corolla at the end of the year? d. assuming 75% exchange rate pass-through, what will be the dollar price of a corolla at the end of the year?
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Business, 23.06.2019 12:00, seymani2
Michael works in an it firm that is well known for making innovative products. michael is asked to develop a product that would serve an unmet need. though he has many ideas for it, none of them quite fits the bill. he finally decides to stand back from the problem for a period of time and ceases to consciously think about the yet-to-be-developed product. after a week, as he looks over his notes, he realizes the solution. the period of time in which michael did not consciously work on the problem is referred to as
Answers: 1
toyota's pass-through. assume that the export price of a toyota corolla from osaka, japan, is ¥2 com...
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