Suppose the Samsung smartphone is sold at $100 in the US and 250 real in Brazil. The market exchange rate is 2.4 real/$ and there is a $5 shipping cost from the US to Brazil. Is it profitable for...


Suppose the Samsung smartphone is sold at $100 in the US and 250 real in Brazil. The market exchange rate is 2.4 real/$ and there is a $5 shipping cost from the US to Brazil. Is it profitable for buyers to import from US to Brazil? If the expected exchange rate of the real (real/$) declines by 10 percent, will the buyer then choose to import?



May 03, 2022
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