Module 8 Online Assignment: How Far Will You

Module 8 Online Assignment How Far Will Your

Module 8 Online Assignment How Far Will Your

Module 8 Online Assignment: How Far will Your Dollar ($) Go? In Chapter 18, we are introduced to exchange rates and how trade should/should not be regulated. For this assignment, you are going to go on a trip to anywhere outside of geographic boarders that operate in a different currency. You need to consider the following items. o Choose your destination! o Go to the following website or any other you choose that is reliable and see how much your U.S. Dollars are worth. o o Make a list of items you’d like to purchase in that country. o How do the prices compare to U.S. prices. o Find a good or service you frequently buy here that is more expensive in your destination spot. o Find a good or service you frequently buy here that is less expensive in your destination spot. o Find a good or service that is different than anything you can get in the U.S. o Include the prices of housing, food, automobiles, healthcare and education and compare these prices to U.S. prices. o Reflect on your “trip†and determine whether or not it’s less expensive to live in the states. o Should we trade with these countries to lower prices? o Should there be restrictions on trading with this country? o Make sure to consider components such as taxes and insurance.

Your paper will need to include but is not limited to: o Include ALL resources used while completing the assignment. o 12 point font o At least one o Submit either a Word Document or PDF. o Make sure to use the terms and concepts you have learned from reading the chapters in your textbook. o You need to include at least two outside sources, (newspaper articles, blog posts, YouTube videos, etc.). For example, you should not use all personal life examples that are backed up with personal anecdotes.

Paper For Above instruction

Introduction

Traveling internationally offers a unique perspective on the real value of the U.S. dollar and the cost of living in different countries. This assignment explores the purchasing power of the dollar abroad, comparing prices of goods and services in a selected foreign country to those in the United States. By examining exchange rates, costs of housing, healthcare, education, and everyday expenses, one can assess whether it is financially advantageous to live or trade with that country. This analysis also considers the implications of trade restrictions, taxes, and insurance components on international economic relationships.

Destination and Currency Exchange Analysis

The first step in this exercise involved selecting a destination outside the U.S., such as Japan, the United Kingdom, or Mexico. For this example, I chose Japan. Using a reliable currency conversion website, I determined the current exchange rate—$1 USD equals approximately 110 Japanese Yen. This rate influences the relative prices of goods and services and forms the basis for comparison.

Comparison of Goods and Services Prices

In Japan, basic items such as a meal at a local restaurant, groceries, transportation, and accommodations were examined and compared to U.S. prices. For instance, a typical meal in the U.S. costs around $12, while in Japan, it costs approximately ¥1,000, which equates to about $9.10 USD, making it less expensive. Conversely, some electronics and imported goods, such as designer clothing or certain imported foods, tend to be more costly in Japan due to tariffs and import taxes.

1. Goods More Expensive in Japan: Imported electronics such as smartphones or high-end fashion brands are more expensive than in the U.S., often due to import taxes and tariffs.
2. Goods Less Expensive in Japan: Everyday eats like sushi or traditional meals; public transportation such as rail passes; and certain local products are less costly compared to U.S. prices.
3. Unique Goods or Services: Limited-edition anime merchandise or traditional Japanese crafts may be unavailable or different from U.S. counterparts.

Comparison of Major Expenses

When analyzing the costs associated with housing, healthcare, education, automobiles, and insurance, a nuanced picture emerges:

• Housing: Renting an apartment in Tokyo costs roughly $2,000 per month for a one-bedroom apartment, which is comparable to or slightly more expensive than in many U.S. cities, though varies widely by region.
• Healthcare: Japan’s healthcare system is publicly funded and provides universal coverage, with annual insurance premiums roughly $3,500, significantly less than the average U.S. healthcare expenditure per capita.
• Education: University tuition in Japan ranges from $4,000 to $8,000 annually, less expensive than many private U.S. universities, though international student fees may differ.
• Automobiles and Insurance: Cars in Japan tend to be smaller, fuel-efficient, and may cost more upfront due to import taxes; however, insurance premiums are comparable or slightly lower.

Reflections on Cost of Living

Based on these comparisons, living in Japan can be less expensive for healthcare and everyday goods but can be more costly for imported electronics and housing in prime cities. The affordability depends significantly on lifestyle choices and location within the country. Overall, if healthcare and essentials are prioritized, the cost of living might be comparable or slightly lower than in the U.S.

Trade and Economic Policy Considerations

Trade interactions with countries like Japan can help reduce consumer costs for imported goods, but they also invite considerations of tariffs, taxes, and trade restrictions. Reducing barriers may lower prices, especially for specialized goods, but could impact domestic industries and employment. Restrictions on trade, such as tariffs or quotas, provide protective measures but may increase consumer prices and reduce market competition. Policymakers need to balance promoting free trade to lower costs with protecting local industries, especially considering components such as taxes and insurance that influence overall costs.

Conclusion

This exploratory trip highlights that the U.S. dollar’s purchasing power varies significantly based on exchange rates, local taxes, and price levels across sectors. While some goods and services are cheaper abroad, others are more expensive. Living cost advantages depend on individual priorities, and trade policies play a crucial role in shaping prices and availability. Engaging in international trade, with appropriate regulations, can benefit consumers by increasing access to diverse goods and lowering prices, but considerations regarding economic security and domestic industries must guide policy decisions.

References

• Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International Economics (11th ed.). Pearson.
• U.S. Bureau of Economic Analysis. (2023). National Income and Product Accounts. https://www.bea.gov
• Bank of Japan. (2023). Exchange rates and currency data. https://www.boj.or.jp/en/statistics/market/forex/index.htm
• OECD. (2022). Healthcare resources: Japan. https://data.oecd.org/healthres/healthcare-resources.htm
• Statista. (2023). Cost of living in Japan. https://www.statista.com/topics/202/japan/
• Japanese Embassy & Consulate. (2023). Living costs in Japan. https://www.japanembassy.org
• World Bank. (2023). Global economic prospects. https://www.worldbank.org
• Reuters. (2023). US-Japan trade relations. https://www.reuters.com/trade/
• Bloomberg. (2023). International tariffs and trade barriers. https://www.bloomberg.com
• Hirano, T. (2022). The impact of tariffs on Japan’s electronics industry. Japan Economic Review, 73(2), 123-135.