Economics 0455 · IGCSE · Foreign exchange rates

Foreign exchange rates — practice question

The table gives the retail price for which the same book may be purchased in four countries. Australia: $14.99$ Australian dollars Canada: $11.99$ Canadian dollars New Zealand: $20.95$ New Zealand dollars United Kingdom: £$6.99$ GB pound What extra information is needed in order to compare the book’s price across the countries in a meaningful way?

  • Adirect tax rates
  • Bexchange rates
  • Cinflation rates
  • Dlevel of import tariffs

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