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| Caroline Brown, the product manager for a U.S. computer manufacturer, is being asked to quote prices of desktop computers to be used in Kuwait. The Kuwaiti government wants the price in British pounds, for delivery next year. Brown knows that the general price level in the United States will increase by 3%. Her banker forecasts that the British pound will depreciate about 5% this year with respect to the U.S. dollar. If Brown is able to quote 700 pounds for immediate delivery, the price that should be quoted for delivery to Kuwait next year is about A. 759 pounds. B. 745 pounds. C. 735 pounds. D. 721 pounds. |