Assume the old rate is U.S. $1 : Euro $1.5 and the new rate is U.S. $1 : Euro $3.

Assume you are an American exporter. Is this a good thing for you or not? (A)

Let’s say the price of your product is U.S. $20.

Please show your work to demonstrate why this is a good thing or not a good thing for you

(hint: compare the prices of your product between old and new rates). (B)

Assume you are an American importer. Is this a good thing for you or not? (C)

Let’s say you have U.S. $1 million in as your budget to buy in European Union.

Please show your work to demonstrate why this is a good thing or not a good thing for you