Deck 20: International Business

Question 1

A tourist from the United States wants to purchase a painting in Mexico City. The price of the painting was 5,927 pesos plus a shipping charge of 387 pesos to send the painting to the tourist's home. How many U.S. dollars would the tourist have to pay when the exchange rate was 10.812 pesos per U.S. dollar?​

Answer 1

$583.98​

Question 2

If the Brazilian real is valued at 1.7438 per U.S. dollar, compute the value in U.S. currency of 5,000 Brazilian reals.​

Answer 2

$2,867.30 in U.S. dollars​

Question 3

If the Mexican peso is valued at 10.812 per U.S. dollar, compute the amount of U.S. currency necessary to buy 100 Mexican pesos.​

Answer 3

$9.25 U.S. dollars​

Question 4

If the Australian dollar exchange rate in U.S. dollars is 0.903497, compute the amount in Australian dollars needed to purchase $200 in U.S. currency.​

Question 5

If the Australian dollar exchange rate in U.S. dollars is 0.903497, compute the amount of U.S. currency required to buy 200 Australian dollars.​

Question 6

If the Danish krone has a current value of 5.0183 per U.S. dollar, compute the amount that could be purchased for $350.​

Question 7

If the Danish krone is valued at 5.0183 per U.S. dollar, how many dollars would be required to purchase a Danish rail ticket costing 748.50 Danish krone?​

Question 8

If the Russian ruble has a current value of 35.1385 per U.S. dollar, compute the amount that could be purchased for $550.​

Question 9

If the Brazilian real is valued at 1.7438 per U.S. dollar, compute the amount of Brazilian reals one could purchase for $100 in U.S. currency.​

Question 10

An American import company purchased 700 cans of Danish cookies at a price of 8.20 krone per can. If the Danish krone were valued at 5.0183 on the day of settlement, how much did the company pay in U.S. dollars?​

Question 11

If the Brazilian real is valued at 0.57346 U.S. dollars, how much in U.S. dollars would be required to satisfy an invoice for produce shipped from Brazil with a price of 24,000 Brazilian reals?​

Question 12

If the Mexican peso is listed under Currency Exchange Rates as 0.09248 in U.S. dollars, compute the amount in Mexican pesos one could purchase for $3,100 in U.S. currency.​

Question 13

An American purchased a shirt in Melbourne, Australia for 42 Australian dollars. The exchange rate was 0.903497 Australian dollars for one U.S. dollar. How much did he have to pay in U.S. dollars?​

Question 14

An Australian firm exported manufactured electronic components to the United States valued at 54,800 Australian dollars. The exchange rate for Australian dollars was 0.903497 per U.S. dollar. What was the amount of U.S. dollars the exporter received?​

Question 15

If the Danish krone is listed under Foreign Currency in dollars as 0.199271, compute the amount of U.S. dollars necessary to buy 100 Danish krone.​

Question 16

An American purchased a pair of shoes in Sydney, Australia. The price was 120 Australian dollars plus 6% tax. How much did he have to pay in American dollars when the exchange rate for Australian dollars was 0.903497 per U.S. dollar?​

Question 17

If the Brazilian real is valued at 0.57346 to the U.S. dollar, compute the amount of Brazilian reals needed to pay for purchase of a television set costing $1,450.00.​

Question 18

If the Mexican peso is valued at 10.812 per U.S. dollar, compute the value in U.S. currency of 5,000 Mexican pesos.​

Question 19

A Hong Kong firm exported manufactured hardware equipment to the United States valued at 65,900 Hong Kong dollars. The exchange rate for Hong Kong dollars was 7.75 per U.S. dollar. What was the amount of U.S. dollars the exporter received?​

Question 20

If the exchange rate for the Australian dollar is 1.10681 per U.S. dollar, compute the value in U.S. dollars of 5,000 Australian dollars.​

Question 21

If the Japanese yen is worth 0.009407 U.S. dollar, what is the dollar value of 100,000 yen?​

Question 22

If the euro is valued at $1.4851 in U.S. dollars, compute the amount of U.S. dollars necessary to buy 100 euro.​

Question 23

If the U.S. dollar is worth 106.3 yen, how much would a tourist using U.S. dollars pay for an airline ticket costing 478,500 yen?​

Question 24

If the euro is valued at $1.4851 in U.S. dollars, compute the amount in euro one could purchase for $100 in U.S. currency. (Round answer to two decimal places.)​

Question 25

If the U.S. dollar is worth 106.3 yen, compute the amount of U.S. dollars necessary to buy 50,000 Japanese yen.​

Question 26

If the euro is valued at $1.4851 in U.S. dollars, compute the value in U.S. currency of 5,000 euro.​

Question 27

If the U.S. dollar is valued at $1.9687 per British pound, compute the amount of U.S. currency necessary to buy 200 British pounds.

Question 28

​Global Concerns, Inc. has contracted to sell certain goods to a company in Australia. The Australian company has contracted to pay 500,000 Australian dollars for the shipment. At the time the contract was signed, the Foreign Currency in dollars column in the financial section of the morning paper showed that one Australian dollar was valued at $0.903497 U.S. dollar. Compute the value in U.S. currency Global Concerns expects to receive from the transaction.

Question 29

If the British pound is valued at 0.507949 per U.S. dollar, compute the amount of pounds one could purchase for $500 in U.S. currency. (Round answer to two decimal places.)​

Question 30

If the U.S. dollar is valued at 0.199271 per Danish krone, how many dollars would a company pay to purchase merchandise from Denmark costing 70,148 Danish krone?​

Question 31

If the exchange rate is 0.507949 British pound for 1 U.S. dollar, how many pounds would it cost a British merchant to pay an American export company for merchandise valued at $200,000? (Round to nearest whole number.)​

Question 32

If the Brazilian real is valued at 0.449049 per U.S. dollar, how much would an American import company pay in U.S. dollars for merchandise valued at 868,300 pounds?​

Question 33

If the British pound is valued at 0.507949 per U.S. dollar, how much would an American import company pay in U.S. dollars for merchandise valued at 789,400 pounds?​

Question 34

If the British pound is valued at 0.507949 per U.S. dollar, compute the value in U.S. currency of 7,000 pounds.​

Question 35

If the Japanese yen is worth 0.009407 U.S. dollar, how many yen would it cost a Japanese importer for merchandise worth $550,500 from a U.S. company?​

Question 36

If the exchange rate is 0.507949 British pound for 1 U.S. dollar, compute the amount of pounds required to pay an American export company for $48,900 in merchandise. (Round answer to nearest whole number.)​

Question 37

If the U.S. dollar is worth 35.1385 ruble, how much would a U.S. importer pay in dollars for Russian merchandise priced at 1,000,000 ruble?​

Question 38

If the U.S. dollar is worth 106.3 yen, how much would a U.S. importer pay in dollars for Japanese merchandise priced at 2,000,000 yen?​

Question 39

If an American import company purchased three gross (1 gross = 144) of Danish hams at a price of 14.40 krone per ham, and the Danish krone were valued at 5.0183 on the day of settlement, how much did the company pay in U.S. dollars?​

Question 40

If the U.S. dollar is worth 106.3 yen, compute the amount a U.S. company would have to pay to buy merchandise valued at 3,900,000 Japanese yen.​

Question 41

A South African firm has contracted to sell a U.S. firm goods valued at 200,000 rand. The rand is valued at $10.4150. Compute the value of the shipment in U.S. dollars.​

Question 42

A major chain of department stores has contracted to purchase from a foreign manufacturer 200 large radios at $36 each and 150 small radios at $22 each. An ad valorem duty of 16% is charged on all radios. Compute the duty the purchaser will pay.​

Question 43

On a certain date the U.S. dollar is valued at 5.7757 per Danish krone and 0.528821 per British Pound. Compute how many more krone than pounds a U.S. citizen would get for $100 U.S. currency. (Round to nearest whole number.)​

Question 44

ABC, Inc. plans to purchase 250 units of a certain component used in building computers in their U.S. factory. ABC, Inc. can purchase the components from country X at a price of $45 each plus an ad valorem duty of 38%, or from country Y at a price of $60 each plus an ad valorem duty of 3%. Compute the amount ABC, Inc. will save by purchasing from country Y.​

Question 45

XYZ, Inc. plans to purchase 460 units of a certain component used in building computers in their U.S. factory. XYZ, Inc. can purchase the components from country A at a price of $42 each plus an ad valorem duty of 42%, from country B at a price of $54 each plus an ad valorem duty of 2%, or from a domestic manufacturer at a price of $51 each. They take the lowest bid. Compute the amount the 460 units will cost XYZ, Inc.​

Question 46

Global Concerns, Inc. has contracted to sell certain goods to a company in Australia. The Australian company has contracted to pay 500,000 Australian dollars for the shipment. At the time the contract was signed, the Foreign Currency in dollars column in the financial section of the morning paper showed that one Australian dollar was valued at $0.903497 U.S. currency. Between the date the contract was signed and the date on which payment was received, the Australian dollar fell to a value of $0.8740. Compute the amount Global Concerns gained or lost by agreeing to accept payment in Australian dollars instead of U.S. dollars.​

Question 47

Fast Manufacturing, Inc. has contracted to sell certain goods to a company in Finland. The price agreed upon for the goods is 500,000 euro. On the date the contract was signed, the euro was valued at $1.30. If the value of the euro fell from $1.30 to $1.25 on the date of payment, compute how much Fast Manufacturing, Inc. lost by contracting in euro instead of U.S. dollars.​

Question 48

GarciaHariss, Inc. plans to purchase 500 units of a certain component used in building cell phones in their U.S. factory. GarciaHariss, Inc. can purchase the components from country A at a price of $32 each plus an ad valorem duty of 32%, from country B at a price of $45 each plus an ad valorem duty of 4%, or from a domestic manufacturer at a price of $41 each. They take the lowest bid. Compute the amount the 500 units will cost GarciaHariss, Inc.​

Question 49

A German firm has contracted to sell a U.S. firm goods valued at 140,000 euro. The euro is valued at $1.45. Compute the value of the shipment in U.S. dollars.​

Question 50

Madison Manufacturing, Inc. has contracted to sell certain goods to a company in Malaysia. The price agreed upon for the goods is 320,000 Malaysian Ringgits. On the date the contract was signed, the Foreign Currency in dollars column in the financial section of the local paper showed that the Malaysian Ringgit was valued at .309502. Compute the U.S. dollar value Madison Manufacturing, Inc. expects to receive for the goods. (Round to nearest dollar.)​

Question 51

Green's Manufacturing, Inc. has contracted to sell certain goods to a company in Norway. The price agreed upon for the goods is 150,000 Norwegian kroners. On the date the contract was signed, the Foreign Currency in dollars column in the financial section of the local paper showed that the Norwegian krone was valued at .185028. If the Norwegian krone rose to .1950 on the date of payment, compute how much Green's Manufacturing, Inc. gained by contracting in Norwegian kroners instead of U.S. dollars.​

Question 52

A U.S. company located in a foreign trade zone imported $1,500,000 worth of goods. The duty rate on the goods is 7%. If 20% of the goods were moved into U.S. Customs territory for sale and 80% were exported for sale, compute how much the company saved by being located in a foreign trade zone.​

Question 53

Princess Jewelry, Inc. has contracted to purchase 144 bracelets from a foreign manufacturer. The price of each bracelet is $32. An ad valorem duty of 20% is charged on each bracelet. Compute the duty Princess Jewelry, Inc. will pay for the shipment.​

Question 54

​Great Manufacturing, Inc. has contracted to sell certain goods to a company in Austria. The price agreed upon for the goods is 900,000 euro. On the date the contract was signed, the euro was valued at $1.29. If the value of the euro rose from $1.29 to $1.30 on the date of payment, compute how much Great Manufacturing, Inc. gained by contracting in euros instead of U.S. dollars.

Question 55

​White's Manufacturing, Inc. has contracted to sell certain goods to a company in the Netherlands. The price agreed upon for the goods is 94,000 Netherlands guilders. On the date the contract was signed, the Foreign Currency in dollars column in the financial section of the local paper showed that the Netherlands guilder was valued at 0.4184. Compute the U.S. currency value White's Manufacturing, Inc. expects to receive for the goods. (Round to the nearest whole dollar.)

Question 56

Roger's Manufacturing, Inc. has contracted to sell certain goods to a company in Saudi Arabia. The price agreed upon for the goods is 250,000 Saudi Arabian riyals. On the date the contract was signed, the Foreign Currency in dollars column in the financial section of the local paper showed that the Saudi Arabian riyal was valued at .2267. If the value of the Saudi Arabian riyal fell from .2267 to .2006 on the date of payment, compute how much Roger's Manufacturing, Inc. lost by contracting in Saudi Arabian riyals instead of U.S. dollars.​