Tee Time Golf Resort plans to use famous Kauri wood from New Zealand for parts of the interior of the magnificent clubhouse at its new golf resort near Salem, OR. According to the importer, each 10-foot slab will cost Tee Time approximately $5,000. Looking at the exchange rates, Tee Time's finance director noted that $500 US dollars = $738 NZ dollars. The importer will order directly from his source in New Zealand. Tee Time's finance director has determined that

Question

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When the value of a U.S. dollar has strength relative to the NZ dollar, American consumers will get more for their dollar in New Zealand. In this case, $1 U.S. dollar = $1.47 New Zealand dollars. The importer will get $1.47 worth of Kauri wood for $1.00 U.S. dollar.

Tee Time Golf Resort Plans to Use Famous Kauri Wood