The following table shows the price of a unit of Gas and Oil in two countries, Saudi Arabia and United Arab Emirates.
|
|
KSA
|
UAE
|
|
Gas
|
50 SAR
|
70 AED
|
|
Oil
|
60 SAR
|
80 AED
|
A: Use the information that you beentaught in ECON 271 class to explain how currency exchange rate can affect the position of Kingdom of Saudi Araba towards its import and exports of Gas and Oil.
B: Use your finding in section A to explain why some country such as Japan want to maintain their exchange rate at this level.
Instruction:
1. The deadline to submit this quiz is 25th May 2015. No submitting will be accepted after this date.
2. Submit your quiz via blackboard only. No Email or Hard copy.
3. Submitting your quiz will not give you full mark, you have to work in your answers really hard.