Why does trade matter? How is this important to me? GBP EUR GBP USD GBP NZD GBP AUD GBP CAD GBP JPY GBP ZAR GBP AED GBP INR GBP TRY GBP CHF EUR GBP EUR USD EUR NZD EUR AUD EUR CAD EUR JPY EUR ZAR EUR AED EUR INR EUR TRY EUR CHF 1.2134 1.6676 2.0038 1.8561 1.8498 170.49 17.909 6.1201 103.29 3.6884 1.4794 0.8242 1.3744 1.6514 1.5297 1.5245 140.51 14.76 5.0439 85.130 3.0398 1.2192 1.2134 GBP EUR Pounds to Euros Pounds to Dollars Pounds to New Zealand Dollars Pounds to Australian Dollars Pounds to Canadian Dollars Pounds to Yen Pounds to South African Rands Pounds to Dirhams Pounds to Rupees Pounds to Lira Pounds to Swiss Francs Euros to Pounds Euros to Dollars Euros to New Zealand Dollars Euros to Australian Dollars Euros to Canadian Dollars Euros to Yen Euros to South African Rands Euros to Dirhams Euros to Rupees Euros to Lira Euros to Swiss Francs GBP USD Pounds to Euros 1.6676 Pounds to Dollars GBP NZD 2.0038 GBP AUD 1.8561 GBP CAD 1.8498 GBP JPY 170.49 GBP ZAR 17.909 GBP AED GBP INR GBP TRY GBP CHF 6.1201 103.29 3.6884 1.4794 Pounds to New Zealand Dollars Pounds to Australian Dollars Pounds to Canadian Dollars Pounds to Yen Pounds to South African Rands Pounds to Dirhams Pounds to Rupees Pounds to Lira Pounds to Swiss Francs 1. If 1 pound equals 1.6676 US dollars, how many pounds does 1 US dollar equal? 2. You are travelling around the world and are, of course, very excited. You start out with 10,000 US dollars. Each time you get to a new country you exchange all of your money for that country’s currency. Why is this not a wise idea? 3. You make a quick stop in London where you exchange your dollars for pounds. You arrive in Belgium hours later, exchange your money and spend 200 US dollars. How many Euros do you have left? Why does trade matter? How is this important to me? 4. When you arrive in Turkey you exchange half of your Euros in the morning for the rate above and then the other half 2 days later for .35 more than your original. How much do you receive in the morning? 2 days later? 5. Traveling around the world has made you concerned with a strong dollar vs. a weak dollar. Since you are a world traveler do you want a strong dollar or weak? Why? 6. What is another way of saying a strong dollar? Weak dollar? 7. If you are selling goods to other countries do you want a strong dollar or weak? Why? 8. I sell my widgets, made in the U.S. of A, to various countries. I know nothing of the foreign exchange market. What problem have I gotten myself into? 9. The US and Europe trade so frequently that a flexible exchange rate is becoming cumbersome. They have moved to a fixed exchange rate. Unfortunately the US dollar is weakening too much. What can be done to stop it? 10. What did the Bretton Woods conference decide? 11. What has happened to the US dollar because of the trade deficit? 12. How would a trade surplus impact the dollar?