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Delvig
2 months ago
15

Because of the high volume of bicycles as a common form of transportation in Beijing and Shanghai, Carl wants to sell his bicycl

e horns in these foreign markets. Currently, the U.S. dollar is trading at a higher rate than the Chinese yuan. Economically speaking, how are Carl's prospects?
Business
1 answer:
Scilla [3.8K]2 months ago
8 0

Answer:

Economically speaking, Carl's business outlook is subject to variations in the currency values of the US and China.

Explanation:

  • The agreement that Carl plans to propose is sensitive to the fluctuation that occurs if the Chinese Yuan depreciates against the US dollar after he begins selling the bicycle horns, which could result in financial losses for him.
  • Thus, whether Carl will gain a profit or suffer a loss hinges entirely on the exchange rates of the two currencies.
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