Phillips NV Produces DVD Players and Exports Them to the United

question 42

Multiple Choice

Phillips NV produces DVD players and exports them to the United States. Last year the exchange rate was $1.25/euro and Phillips charged 120 euro per player in Euroland and $150 per DVD player in the United States. Currently the spot exchange rate is $1.45/euro and Phillips is charging $160 per DVD player. What is the degree of pass through by Phillips NV on their DVD players?

• A) 92%
• B) 33.3%
• C) 41.7%
• D) 4.1%

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Definitions:

Deontological

An ethical theory that suggests actions are morally right based on adherence to rules or duties, regardless of the consequences.

Safest Vehicle

A subjective term often used in consumer information to describe a vehicle that meets or exceeds safety standards and has a low rate of accidents or injuries associated with it.

Intuitionism

A philosophical theory asserting that moral truths are known by intuition, independent of empirical evidence or logical deduction.

Rightness Or Wrongness

Refers to the moral quality of actions, decisions, or behaviors as being morally correct or incorrect.