Question 8.MSE.5: Assume that the Polish currency (called zloty) is worth $.32...

International Financial Management

Assume that the Polish currency (called zloty) is worth $.32. The U.S. dollar is worth .7 euros. A U.S. dollar can be exchanged for 8 Mexican pesos.
Last year a dollar was valued at 2.9 Polish zloty, and the peso was valued at $.10.
a. Would U.S. exporters to Mexico that accept pesos as payment be favorably or unfavorably affected by the change in the Mexican peso’s value over the last year?
b. Would U.S. importers from Poland that pay for imports in zloty be favorably or unfavorably affected by the change in the zloty’s value over the last year?
c. What is the percentage change in the cross exchange rate of the peso in zloty over the last year? How would firms in Mexico that sell products to Poland denominated in zloty be affected by the change in the cross exchange rate?

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