"shanging" - 1 õppematerjal

„International Ecomomics“ by Hendrik Van den Berg

A lot makes important moves currency . Different countries usually use diferent currencies. Therefore, even though prices reflect opportunity costs wihin each country, these prices will not be immediately comparable across countries. This is where Exchange rates come in. Exchange rates Translate the prices in one country into prices in other countries currencies. Example homeland (U.S) food costs 2$ but Aboroad 20¥. If we look price shanging processes then there is good exampl about Foreign demand for tequila Mexican drinkers. Tequila has been the national dring of Mexico ever since the Spanish perfected a native fermente drink derived from the agave plant over 400 years ago. In recent years, world demand for tequila has been growing much more rapidly than in the past and production has doubled over the past years in order to satisfy growing world demand.