Question

Increased tension in the Taiwan Strait causes the TWD to depreciate to a low of 40 TWD =$1. If TWD current GDP is 175.000 TWD, what is its current GDP when measured in USD? Provide your answer below:

Answer 1

To determine the GDP of Taiwan in USD, divide the GDP in TWD by the exchange rate of 40 TWD to $1, which results in $4,375.

Step-by-step explanation:

To calculate the current GDP of Taiwan in USD, you divide the GDP in TWD by the exchange rate. With a reported exchange rate of 40 TWD = $1, and a GDP of 175,000 TWD, the calculation is as follows:

GDP in USD = GDP in TWD / Exchange Rate

GDP in USD = 175,000 TWD / 40 TWD per USD

GDP in USD = $4,375

Therefore, when measured in USD, the current GDP of Taiwan is $4,375.