Question

You are required to forecast the expected change in the export to the USA from China and Japan. The spot rate is 200 Japanese yen per yuan. The spot rate 6 months before was 180 Japanese yen per yuan. The value of Chinese yuan is tied with the US $ and it will be.​

Answer 1

Answer:

sorry.................

......

.

.

.......

.

Answer 2

The expected change in the export to the USA from China and Japan.

Explanation:

• The Spot rate 6- months before is

         $1$ Yuan$=180$ Yen

• Spot rate now becomes

         $1$ Yuan$=200$ Yen

• The value of the Yuan with respect to US$ has not changed and from the above rates, it can be concluded that, Chinese Yuan neither appreciates nor depreciates in $6$ months time but, the Japanese Yen depreciates in $6$ months of time.
• Hence, the exports to the USA from China remain the same, from Japan will increase.
• It is because the exports will increase as the value of the currency depreciates and as per the given circumstances Japanese Yen depreciates in $6$ months of time hence the exporters will be motivated with higher inflows on the export receivables.