need help with Macro Econ Exchange Rate question…?
I can’t seem to wrap my head around this. I can usually figure out USD to CAD conversion. (for example.USD exg 10% usd, usd = .10cad)
But these international rates are getting me.
country $ of shirt exchange rate
canada 31.50 -
china 126 yuan 5.3
mexico 168 6
what is the cheapest country to buy the shirt in?
how do you figure out the currency exchange and how much 128 yuan are in canadian dollars?
thanks
Basically you can divide the value of the product in the local currency by the exchange rate to get that value of the product in USD.
e.g. Using the numbers you provided
31.5/1.1=28.65USD
126/5.3=23.77USD
169/6.0=28.17USD
To work out 128yuan in canadian dollars you can use the common factor available, in this case conversion to USD.
e.g.
128yuan/5.3=24.15 USD
24.15USD x 1.1= 26.57CAD
Hope that helps
please be aware that i did not confirm your exchange rates so the actual values given may not be current.