Suppose in 2014 1 Euro 4 Turkish Lira and 1 3 TL Therefore

Suppose in 2014, 1 Euro = 4 Turkish Lira and 1$= 3 TL Therefore, a shirt which sells at 300TL in Turkey, 75 Euro and 100$. Suppose: From 2014 to 2015 nflation in Europe is 20%, %20 in Turkey, %80 in USA. What must be $/TL exchange rate in 2015 so that the t-shirt trade business does not change in favor of Turkey or the USA in 2015??

Solution

If inflation in america is 80% then the amount will be 180$

In turkey the inflation is 20% so now the t shirt will cost 360TL

Now 1 USD = 2 TL should be the exchanhe rate