Assume that American rise sells for $100 per bushel, Japanese rice sells for 16,000 yen per bushel, and the nominal exchange rate is 80 yen per dollar.
Explain how you could make a profit from this situation. What would be your profit per bushel of rice? If other people exploit the same opportunity, what would happen to the price of the rice in Japan and the price of rice in the United States?

Suppose that rice is only commodity in the world what would happen to the real exchange rate between the United States and Japan?

  1. 👍 0
  2. 👎 0
  3. 👁 561

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math Help!

    Mrs. Miller sells a house for $179,000. If she earns a commission of 6%, how much money does she earn? Write a porportion and show your work. My answer 179,000/100=x/6 107400=100x 10,740=x Am I right? Thank you

  2. Statistic

    Mamma Temte bakes six pies a day that cost $2 each to produce. On 15% of the days, she sells only two pies. On 27% of the days, she sells 4 pies, and on the remaining 58% of the days, she sells all six pies. If Mamma Temte sells

  3. math

    In old gangster movies on TV, you often hear of "number runners" or the "numbers racket." This numbers game, which is still played today, involves betting $1 on the last three digits of the number of stocks sold on a particular

  4. math

    Which shows the following numbers ordered from greatest to least? 0.5, 5/8, 65% , 3/5 a. 3/5 , 5/8 , 0.5, 65% b. 0.5 , 3/5 , 5/8, 65% c. 65%, 3/5 , 0.5 , 5/8 d. 65%, 5/8, 3/5, 0.5 Mrs. Henderson sells houses. She gets a 5%

  1. math

    A bakery sells 5800 muffins in 2010. The bakery sells 7420 muffins in 2015. Write a linear model that represents the number y y of muffins that the bakery sells x x years after 2010

  2. math

    fresh side grocery sells 7 bagels for $4.41. value mart sells 5 bagles for $3.60 how do the unit rates compair

  3. statistics and probability

    Jeremy sells a magazine which is produced in order to raise money for homeless people.The probability of making a sell is independently 0.09 fr each person he approaches.Given that he approaches 40 people,find the probability that

  4. economics

    A firm that sells e-books – books in digital form downloadable from the Internet – sells all e-books relating to do-it-yourself topics (home plumbing, gardening, and so on) at the same price. At present, the company can earn a

  1. Algebra

    A confectioner sells two types of nut mixtures. The standard-mixture package contains 100 g of cashews and 200 g of peanuts and sells for $1.85. The deluxe-mixture package contains 150 g of cashews and 50 g of peanuts and sells

  2. mathhelop

    A hot-dog stand owner makes a profit of $100 when he sells 90 hot dogs a day. He has a loss of $30 when he sells 25 hot dogs a day. Write a linear equation that represents his profit? No idea what I am supposed to do.

  3. Math

    Philip sells electronics and works on a commission basis. If his commission is 4%, and he sells $15,000 worth of electronics, what are his earnings.

  4. algebra

    Wild rice sells for $6 pound, and plain rice sells for $1 per pound. A grocer wants 10 pounds if the mixture to sell for $2 per pound. How much of each type should he used?

You can view more similar questions or ask a new question.