Chapter 11

Question 6. Page 246-247 were quite helpful in revealing currency rates in each country. Wheelan revealed that The American Dollar is just a piece of paper but it's intrinsic value is worth the same as the other currencies. The difference is the exchange rate and value that we have over many other countries in the world. We use the PPP which is the purchasing power parity. Many times when trading with other countries we notice that our value is lost once exchanging with others due to our high currency level. Wheelan talked about going to china and heading to the black market to exchange his $100 for Chinese dollar. The problem was huge in return he received $13.50. The good thing is the PPP they collect and compare currency all over the world which will convert our dollars equally with those other countries no matter the value changed.