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Switzerland comparative advantage in chocolate

04/12/2021 Client: muhammad11 Deadline: 2 Day

Critical Thinking: Currency Exchange/Conversion

Objective:

Select a currency denomination from another country and identify it's value and how it differs from ours. Consider the financial aspect of dealing with different currency denominations, exchange rates and conversion factors. Identify and include that nations comparative advantage and disadvantage to support their current currency rating. Lastly, you will show a simple hourly payroll example dealing with odd dollar amounts and who benefits from your rounding up or down.

Currency Selection:

To begin, select a country and identify their form of currency (ie. Euro, Ruble, Peso, Yen, Dinar, Lira, etc). Why did you choose this particular country, and are you stationed there? Born there? Provide some background.

Denomination Comparison:

Provide examples and identify how this country's currency denominations differs from ours.

Financial/Exchange Rates/Conversion:

Consider the financial aspect! An exchange rate is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country's currency in relation to another currency. A currency exchange constantly monitors changes in conversion rates to determine the monetary value of each country's currency. Conversion Sample: Explain how to convert one nation's form of currency into another, incorporate one example or formula showing the conversion equation.

Comparative Advantage/Disadvantage:

A country is said to have a comparative advantage in whichever good has the lowest opportunity cost. For example Switzerland has a comparative advantage in the production of chocolate. Opportunity cost measures a trade off. But the good or service has a low opportunity cost for other countries to import.

Payroll Calculation & Rounding off:

Consider being the owner of a small business (Cupcake Shoppe, Lawn Service, Automotive Repair Shop, etc) and aspect you're responsible for is paying your employee or employees. Provide an example of how you'll calculate paying your employee for one week (40-hrs) at a rate of $19.55/hr. Now your employees want to be paid in Peso (MXN) and the current exchange rate is 0.0529.

The total should shows four or five places beyond the decimal and you'll have to round up or down. You will explain who keeps the difference, the owner or employee after you round it back to 2-places beyond the decimal. This is similar to the price you pay for gas 1/10 of a cent below a break point. You won't find the tenths of a cent on your paycheck, so where does it go?

General Guidelines/Requirements: Assignment length will be measure in Word Count rather than the number of pages. Word Count for this assignment is 1600 and normally acceptable to be 10% above or below. Therefore acceptable word count range would be 1440 to 1760.

Click on the following link to view general guidelines for File Format, Fonts, Spacing, Headings, Title or Cover Page, Word Count & Assignment Length

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