The Import House Placed an Order Today for One Million

question 136

Multiple Choice

The Import House placed an order today for one million Thai baht of furniture from Thailand. The furniture will be delivered and paid for one year from today. The spot price of the baht is 44.15. The
Annual inflation rate in Canada is 3% while the inflation rate in Thailand is 10%. The Import House
Elects to accept all of the exchange rate risk. How much should The Import House expect to pay for
The shipment of furniture when it arrives?

• A) $20,349
• B) $21,168
• C) $22,650
• D) $22,708
• E) $23,173

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Definitions:

Core Capitalist Country

A country that is at the forefront of capitalism, having well-developed industries, technological advancements, and a significant influence on global economic policies.

Peripheral Capitalist Country

A term used in world-systems theory to describe countries that are less economically developed and often exploited by more developed core countries, mainly focusing on exporting raw materials.

Geopolitical Position

The strategic significance of a country's location on the global stage, in terms of politics, economics, and military strategy.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people, often through industrial, technological, and infrastructural advancements.