6. Arbitraging
1. Review exchange rates
2. Pick a product and review the prices in both countries
3. Are the prices different than the exchange rates?
4. Buy currency in the low priced country
5. Buy the product in the low priced country
6. Move to the high priced country
7. Sell in the high priced country
7.
8. 1.00 Dollar to 51.91 Peso
USD to PHP
$ to ₱
$ 50.00
x
51.91
=
₱ 2,595
₱ 1,973
÷
51.91
=
$ 38.00
10. Cost?
Arbitraging
1. Traded $38 for ₱ 1,973
2. Bought shoes for ₱ 1,973
3. Shipped to U.S.
4. Sold in U.S. for $50
5. Traded $38 for $50
6. Made $12 on $38
7. Made 31 percent profit
8. Repeat
11. 1. Dollar to Won (KRW) rate is 1 to 1,176
2. Cell Phone in U.S. is $600
3. Same Cell Phone in South Korea is 600,000
4. Cost to ship is $5
5. What should you do and how much will you
make? Dollars and percent?
12. Time Price Analysis
A banana cost $1.00 in 2010 and your wage was $8 an hour.
In 2019 it cost $1.50 and your wage was $15 an hour.
1.What is the time price in 2010?
2.What is the time price in 2019?
3.What was the percentage change in time prices?
4.What is the time price multiplier?
19. For the earth is full, and there is enough and
to spare; yea, I prepared all things, and have
given unto the children of men to be agents
unto themselves.
Doctrine and Covenants 104:17
Year: 1834
