2003 - Pennsylvania State University
For ease of calculations, we consider the exchange rate going from $1.25 per euro (beginning of 2018) to $1.10 per euro (as of now). Assume that you sell your output to Europe for a US price = $10, and the exchange rate at the beginning of 2018 was one euro = $1.25 numbers so that the euro price of your product is $10/$1.25 = 8 euros. ................
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