Comparing Cheap Dates Around the World. Comparison of prices or costs across different country and currency environments requires translation of the local currency into a single common currency. This is most meaningful when the comparison is for the identical or near-identical product or service across countries. Deutsche Bank has recently started publishing a comparison of cheap dates-an evening on the town for two to eat at McDonald's, see a movie, and drink a beer. Once all costs are converted to a common currency, the U.S. dollar in this case, the cost of the date can be compared across cities relative to the base case of a cheap date in USD in New York City. After completing the table answer the following questions. a. Which city in the table truly offers the cheapest date? b. Which city in the table offers the most expensive cheap date? c. If the exchange rate in Moscow on the Russian ruble (RUB) was 0.0429, instead of 0.0283, what would be the USD price? d. If the exchange rate in Shanghai was CNY 6.54-1 USD, what would be its cost in USD and relative to a cheap date in New York City? a. Which city in the table truly offers the cheapest date? (Select the best choice below.) OA. The truly cheapest cheap date could be had in Mumbai, India, at only 25% of what it costs in New York City. B. The truly cheapest cheap date could be had in Jakarta, Indonesia, at only 25% of what it costs in New York City. OC. The truly cheapest cheap date could be had in Mexico City, Mexico, at only 25% of what it costs in New York City. OD. The truly cheapest cheap date could be had in Manila, Phillipines, at only 25% of what it costs in New York City.
Comparing Cheap Dates Around the World. Comparison of prices or costs across different country and currency environments requires translation of the local currency into a single common currency. This is most meaningful when the comparison is for the identical or near-identical product or service across countries. Deutsche Bank has recently started publishing a comparison of cheap dates-an evening on the town for two to eat at McDonald's, see a movie, and drink a beer. Once all costs are converted to a common currency, the U.S. dollar in this case, the cost of the date can be compared across cities relative to the base case of a cheap date in USD in New York City. After completing the table answer the following questions. a. Which city in the table truly offers the cheapest date? b. Which city in the table offers the most expensive cheap date? c. If the exchange rate in Moscow on the Russian ruble (RUB) was 0.0429, instead of 0.0283, what would be the USD price? d. If the exchange rate in Shanghai was CNY 6.54-1 USD, what would be its cost in USD and relative to a cheap date in New York City? a. Which city in the table truly offers the cheapest date? (Select the best choice below.) OA. The truly cheapest cheap date could be had in Mumbai, India, at only 25% of what it costs in New York City. B. The truly cheapest cheap date could be had in Jakarta, Indonesia, at only 25% of what it costs in New York City. OC. The truly cheapest cheap date could be had in Mexico City, Mexico, at only 25% of what it costs in New York City. OD. The truly cheapest cheap date could be had in Manila, Phillipines, at only 25% of what it costs in New York City.
Chapter22: International Financial Management
Section: Chapter Questions
Problem 9P
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Transcribed Image Text:Comparing Cheap Dates Around the World. Comparison of prices or costs across different country and currency environments requires translation of the local currency into a single common currency. This is most meaningful when the
comparison is for the identical or near-identical product or service across countries. Deutsche Bank has recently started publishing a comparison of cheap dates-an evening on the town for two to eat at McDonald's, see a movie, and drink a
beer. Once all costs are converted to a common currency, the U.S. dollar in this case, the cost of the date can be compared across cities relative to the base case of a cheap date in USD in New York City. After completing the table
answer the following questions.
a. Which city in the table truly offers the cheapest date?
b. Which city in the table offers the most expensive cheap date?
c. If the exchange rate in Moscow on the Russian ruble (RUB) was 0.0429, instead of 0.0283, what would be the USD price?
d. If the exchange rate in Shanghai was CNY 6.54-1 USD, what would be its cost in USD and relative to a cheap date in New York City?
a. Which city in the table truly offers the cheapest date? (Select the best choice below.)
OA. The truly cheapest cheap date could be had in Mumbai, India, at only 25% of what it costs in New York City.
B. The truly cheapest cheap date could be had in Jakarta, Indonesia, at only 25% of what it costs in New York City.
OC. The truly cheapest cheap date could be had in Mexico City, Mexico, at only 25% of what it costs in New York City.
OD. The truly cheapest cheap date could be had in Manila, Phillipines, at only 25% of what it costs in New York City.
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