If We Ignore Transportation Costs and the Price of a Pair

question 58

Multiple Choice

If we ignore transportation costs and the price of a pair of Nike shoes in Detroit is $100 U.S.what should be the price of the Nike shoes in Windsor, Canada (in Canadian dollars) if the nominal exchange rate is 1.36 Canadian dollars/1 U.S.dollar?

• A)74
• B)100
• C)136
• D)64

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Definitions:

Sign Language

A visual language that uses manual communication, body language, and facial expressions to convey meaning, primarily used by deaf people.

Convergent Thinking

A cognitive process that involves focusing on finding a single, correct answer to a problem, as opposed to generating multiple solutions.

Validity

Degree of correspondence between a measurement and the phenomenon under study.

Constructability

A concept in engineering that assesses how efficiently a structure or system can be built, considering all practical aspects of construction.