Currency Exchange

             One of the first things that strike Americans traveling or doing
             business in Israel is the exchange rate between the U.S. Dollar and the New
             Israeli Shekel. Of course, most are extremely happy when they leave the
             local exchange office or bank with a large wad of bills where they
             previously had but a few. This is because the current rate of exchange
             between the dollar and the shekel is 4.48 NIS per one dollar.
             Unfortunately, this exchange does not necessarily mean that you can
             buy more in Israel. Take, for example that one wishes to purchase the
             latest souvenir t-shirt, say "I got stoned in Gaza." Now, of course it is
             normal to salivate over such a beauteous find. However, upon asking the
             price of this apparel gem, one's mouth may soon revert to its formerly
             parched state (completely normal in Middle-Eastern climes). Especially
             when the shopkeeper grandly announces that the item will cost you 89.58
             NIS. Whoa, doggy! That seems like a lot. In actuality, however, the
             Thus, one can see that in most markets it is not the amount of a
             particular currency that matters, but just how much that amount actually
             buys in the marketplace. For example, if one were importing the Gaza t-
             shirts, they would be of a relatively normal price after the cost is
             converted to dollars. What affects the price of the product as far as
             market fluctuations is the real value of the currency exchanged. This
             hinges on many complex factors, including (foremost) the economic health of
             each country involved. This means that if the overall price of goods is
             expensive in a given country, compared to the country one is importing to,
             the price of the item will be expensive to import and expensive for the
             consumer to buy. However, if the cost of the goods is relatively
             inexpensive compared to comparable goods in the importing country, the
             import cost will be low, as well as the price tha
             ...

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Currency Exchange. (1969, December 31). In MegaEssays.com. Retrieved 23:49, September 19, 2024, from https://www.megaessays.com/viewpaper/201788.html