6. A computer part is priced at 250 baht in Thailand and $12.50 in the U.S....
6. A computer part is priced at 250 baht in Thailand and $12.50 in the U.S. The nominal exchange rate is $1 to 16 baht. This means the computer part: a. is less expensive in Thailand. b. is more expensive in the United States. c. is less expensive in the United States. d. costs the same in Thailand and the United States.
Homework Answers
Answer : 6) The answer is option c.
Based on given information, $1 = 16 baht.
So, $12.50 = 16 * 12.50 = 200 baht
As the price of computer part is 250 baht in Thiland and in U.S. $12.50 which is equal to 200 baht, hence in U.S. the computer part is less expensive. Therefore, option c is correct.
Add Answer to:
6. A computer part is priced at 250 baht in Thailand and $12.50
in the U.S....
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