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boland boland
wrote...
Posts: 1938
3 years ago
Phillips NV produces DVD players and exports them to the United States. Last year the exchange rate was $1.25/euro and Phillips charged 120 euro per player in Euroland and $150 per DVD player in the United States. Currently the spot exchange rate is $1.45/euro and Phillips is charging $160 per DVD player. What is the degree of pass through by Phillips NV on their DVD players?
A) 41.7%
B) 33.3%
C) 92%
D) 4.1%
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Fundamentals of Multinational Finance


Edition: 5th
Authors:
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noxx53noxx53
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Posts: 1936
3 years ago
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