 Only 9 countries have iPhone 6’s available.  The US, Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and the UK.  One unit costs $749 in Canada.  How much would you pay for one in one of the other countries?

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 Consider these deals:  Nissan Altima Hybrid = 3,000,000 Yen  At a dealership in Yokosuka, Japan  A bottle of Coke = 5 Euros  At the Rome airport in Italy  Big Mac = 25 Pesos  At a McDonald in Mexico

 Because countries have different currency systems, it is necessary to determine the value of one nation’s money in terms of another’s, in order to conduct international trade.

 In general, a business requires payment in the currency of its home country.  The process of converting one currency into another is called currency exchange.  The exchange rate – the value of one currency in relation to another.  In 2002, CAD $1 = USD $0.62  Today, CAD $1 = USD $0.90

 Floating exchange rate  The price of currency fluctuates according to market conditions.  Supply and demand  Interest rate differentials, relative inflation, export competitiveness, economy growth, deficits, debt etc. What does this mean to you???

 In January, 2002 one CAD dollar was worth 62 cents in the United States. What would it have taken in Canadian money to buy one U.S. dollar? $1.613