Question

Comparing Cheap Dates Around the World. Comparison of prices or costs across different country and currency environments requires translation of the local currency into a single common currency. This is most meaningful when the comparison is for the identical or​ near-identical product or service across countries. Deutsche Bank has recently started publishing a comparison of cheap and evening on the town for two to eat at​McDonald's, see a​ movie, and drink a beer. Once all costs are converted to a common​ currency, the U.S. dollar in this​ case, the cost of the date can be compared across cities relative to the base case of a cheap date in USD in New York City. After completing the tableanswer the following questions.c. If the exchange rate in Moscow on the Russian ruble​ (RUB) was USD 0.0493/RUB instead of USD 0.0283/RUB what would be the USD​price?​d. If the exchange rate in Shanghai was CNY 6.5/USD what would be its cost in USD and relative to a cheap date in New York​City?

Answer 1

Answer:

The solution to the given problem is done below.

Explanation:

a) If the exchange rate in Moscow on the Russian ruble​ (RUB) was USD 0.0493/RUB instead of USD 0.0283/RUB what would be the USD​price?

Cost of date= Cost of date in local currency * Conversion rate

=RUB 2451.24*0.0493

=120.84 USD

​d. If the exchange rate in Shanghai was CNY 6.5/USD what would be its cost in USD and relative to a cheap date in New York​City?

Cost of date= Cost of date in local currency * Conversion rate

CNY=373.84*0.15015

=56.14 USD

Cost in SHN would be $56.14.

Relative to NYC=(Cost of date in SHN/Cost of date in NYC)*100

=($56.14/$93.20)*100

=60.24%