ArtTech exports a specialized machine part to Japan. The price set in Japan is 120,000...
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ArtTech exports a specialized machine part to Japan. The price set in Japan is 120,000 and the cost incurred in the US is $800. The current exchange rate is 120 per dollar and the profit per unit is $200. Over a year the inflation rate in US is 2% and the inflation rate in Japan is 0%. The price in Japan denominated in yen remains constant and the cost in the US increases by the US inflation rate of 2%. What will be the profit per unit at the end of the year if the nominal exchange rate increased to 122 per dollar? Report your answer without the $ symbol and rounded to two decimal places.
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