This is a question on appreciation/depreciation, please see illustrative data in the attachment.
a) Given illustrative data for a company selling its output in a foreign country, calculate effects of an appreciation and a depreciation in the exchange rate on the price of its output in that country and the likely effects on the demand for its output.
b) For a company sourcing key inputs in a foreign country, calculate effects of an appreciation and depreciation in the exchange rate on its input prices and the likely effects on the company's cost of production.
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