The following table shows the hypothetical data of exchange rates and the price of lattes.
a)Using the relative price of latte,determine the latte exchange rate in the three countries.
_____ Chinese Yuan = $1 Canadian
_____ Japanese yen = $1 Canadian
_____ British pound = $1 Canadian
b)Compared with the latte exchange rates,are the actual exchange rates overvalued or undervalued?
Chinese Yuan is __________
Japanese yen is __________
British pound is __________
c)Given your answers in b),would you expect Canadian exports to each of these countries to increase or decrease?
Canadian exports to China will __________
Canadian exports to Japan will __________
Canadian exports to the United Kingdom will __________
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