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Business, 24.05.2021 23:10 vanessacox45
One group that can benefit from free-trade treaties like NAFTA and at least one group who loses.
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Jaguar has full manufacturing costs of their s-type sedan of £22,803. they sell the s-type in the uk with a 20% margin for a price of £27,363. today these cars are available in the us for $55,000 which is the uk price multiplied by the current exchange rate of $2.01/£. jaguar has committed to keeping the us price at $55,000 for the next six months. if the uk pound appreciates against the usd to an exchange rate of $2.15/£, and jaguar has not hedged against currency changes, what is the amount the company will receive in pounds at the new exchange rate?
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One group that can benefit from free-trade treaties like NAFTA and at least one group who loses....
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