In the US a Box of Tea Costs $5

question 33

Essay

In the U.S. a box of tea costs $5. The same box of tea in Uganda costs 10,000 schillings (the currency of Uganda). If the real exchange rate is 5/4, what is the nominal exchange rate? Show your work.

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Definitions:

Supply Chain

The entire process of making and selling commercial goods, including raw material gathering, manufacture, distribution, and sale.

Target Markets

Specific groups of potential customers towards which a business directs its marketing efforts and products.

Marketing Concept

A management orientation that focuses on identifying and meeting the needs and desires of consumers.

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.