Suppose that your firm wants to import sugarcane from Brazil. The exchange rate is 3 Brazilian reals per U.S. dollar and sugarcane costs 36 reals per ton. How much is a ton of sugarcane in U.S. dollars?
A) $12
B) $39
C) $108
D) $109

Question

Quizplus · Accepted Answer

To convert the cost from reals to U.S. dollars, divide the cost in reals by the exchange rate: 36 reals / 3 reals per U.S. dollar = $12.

Suppose That Your Firm Wants to Import Sugarcane from Brazil