Question

Nadir Imports Co is based in the UK and buys fruit from other countries to sell to

supermarkets. One tonne of bananas from abroad costs $250 and at the exchange rate of E1:$2.5 this costs Nadir 100 for the imports. If the value of the Were now to depreciate, what would happen to Nadir imports costs? Assume that the value of the Snow falls to E1:$2. how much will a tonne of bananas now

cost? The answer is E125, which is a substantial increase in costs for the importing firm
Read the case study above
a) Explain what would happen to the cost of Nadir Imports sales and the possible effect on profitability if the depreciated b)Explain what would happen to the cost of Nadir Imports sales and the possible effect on profitability the appreciated​

Answer 1

Answer:

Explanation:

How many banana varieties exist and what are the differences? ... Approximately 50 billion tonnes of Cavendish bananas are produced globally every year. ... as the Cavendish banana can be eaten raw, as they are sweet and easily digestible when ripe. ... Production in both countries mostly serves the domestic market.