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Phillips NV produces DVD players and exports them to the United States Last year the exchange rate was 125 euro and Phillips charged 120 euro per player in Euroland and 150 per DVD player in the

Phillips NV produces DVD players and exports them to the United States. Last year the exchange rate was 
$1.25/euro and Phillips charged 120 euro per player in Euroland and $150 per DVD player in the United States. 
Currently the spot exchange rate is $1.45/euro and Phillips is charging $160 per DVD player. What is the degree of 
pass through by Phillips NV on their DVD players?
A) 92%
B) 33.3%
C) 41.7%
D) 4.1%

Apr 18 2021 View more View Less

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