As you have seen, the dollar value of the won decreased by 50% from January 1997 to January 1998. This was a serious crash, as shown by the cartoon on the left.
Now lets go back to the example of Korean and American merchants wishing to purchase cars for the others country. Go to the Changes in Exchange Rates Worksheet to calculate the effect of changes in the exchange rates to the cost of buying a foreign car in the Korea and the United States.
Continue with this lesson click the "Ahead" button below.
