MBA 6601 International Business Exchange Rate Examples

MBA 6601, International Business Exchange Rate Examples Rates table

Mba 6601 International Businessexchange Rate Examplesrates Tablecount

MBA 6601, International Business Exchange Rate Examples Rates table Country/Currency USD value for 1 unit of another currency (as of 3/15/16) Euro(€) 1.124897 Japanese yen(¥) .008847 Swiss franc(£) 1.030061 One-step examples Example 1: Convert $3,000 to euros. Divide the dollar amount by the given euro rate (1.124897). $3,000 ÷ 1.124897 = €2,666.91 Example 2: Convert $3,000 to yen. Divide the dollar amount by the given yen rate (.008847). $3,000 ÷ 0.008847 = ¥339,098 Example 3: Convert £1,500 to U.S. dollars. Multiply the Swiss franc amount by the given Swiss franc rate (1.030061). £1,500 × 1.030061 = $1,545.09 Example 4: Convert €16,000 to U.S. dollars. Multiply the euro amount by the given euro rate (1.124897). €16,000 × 1.124897 = $17,998.35 Multiple-step Examples In some cases, it may take a few steps to calculate the currency since only the most frequently used rates are provided by financial media. An example would be converting euros to yen. (You do not have to use this method to complete your assignment if you are familiar with an alternative method.) Example 5: Convert €3,000 to yen. Step 1: Convert euros to dollars, €3,000 × 1.124897 = $3,374.69. Step 2: Convert dollars to yen, $3,374.69 ÷ 0.008847 = ¥381,450.32. Example 6: Convert ¥50,000 to Swiss francs. Step 1: Convert yen to dollars, ¥50,000 × 0.008847 = $442.35. Step 2: Convert dollars to Swiss francs, $442.35 ÷ 1.030061 = €429.44. Practice Country/Currency USD value for 1 unit of another currency Euro(€) 1.121303 Japanese yen(¥) 0.008878 British pound (£) 1.428021 Convert $8,000 into the following currencies: 1. Euros – 2. Yen – 3. Pounds – Convert the following into U.S. dollars: 4. €1,000 – 5. ¥60,000 – 6. £400 – Convert the following: 7. €2,000 to pounds 8. ¥70,000 to pounds Note: Solutions are on the following page. Solutions 1. €7,134.91 2. ¥901,103.27 3. £5,602.01 4. $1,121.00 5. $532.80 6. $571.00 7. £1,570.00 8. £435.19 MBA 6601, International Business Unit IV Assignment Complete Part 1 and Part 2 of this assignment, and submit as a single document for grading.

Part 1

Your company is deciding to expand to the following countries, and you and two other managers will have to visit these countries to set up operations. You have $1,500.00 to convert in each currency. Compute the exchange amount for each, and complete the table. Country/Currency USD value for 1 unit of another currency (as of 2/17/16): Japanese yen $0.008754, Euro €1.1159, British pound £1.4398. While visiting each country, you have to buy supplies and equipment for your operations. Determine what it costs you in U.S. dollars using these exchange rates and complete the table. Japanese yen Computer €167,000.00, Euro Desks & chairs €1,125.00, British pound Printer £575.00.

Part 2

Pedro in Costa Rica wants to purchase some wild Atlantic salmon from Hans in Iceland. The fish are purchased in Iceland’s currency, the krona. Pedro has 1,000,000 colons to start with (no transaction fee, shipping not included). How much krona does he have to work with? The country/currency USD $ value for 1 unit of another currency (as of 2/17/16): Euro €0.001745, Costa Rica colon CRC $0.001909, Iceland krona ISK $0.00788. The next day, Hans decides to purchase bananas from Costa Rica. Hans’s sister can convert currency in euros with no fee. Hans proceeds to convert his received kroner into colons and then to euros. List your steps and results, and explain factors that could cause the country's currency to weaken.