Economics question about the exchange ratio?

Question

Hi I'm just wondering how I figure out the exchange ratio. There's the production of rice and rubber for Thailand and Malaysia.

Thailand 8000 for rice and 2000 for rubber

Malaysia 10000 for rice and 4000 for rubber.

Any help is greatly appreciated! Thank you!

Answer 1

Doesn't seems there is enough information available. You should provide also weights in consumption of these two goods.

Country......Rice....Rubber

Thailand....8'000...2'000

Malaysia..10'000...4'000

For rice exchange rate is 8(Th)=10(Ma) or 1(Ma)=0.8(Th) or 1(Th)=1.25(Ma)

For rubber exchange rate is 2(Th)=4(Ma) or 1(Th)=2(Ma) or 1(Ma)=0.5(Th)

There: (Ma) Malaysian currency and (Th) Thailand currency.

If weights are even then:

Country....Rice....Rubber....Total

Thailand...8'000...2'000....10'000

Weights....50%....50%.......100%

Malaysia..10'000..4'000...14'000

Weights....50%....50%.......100%

For exchange rate is 1(Th)=1.4(Ma) or 1(Ma)=0.7143(Th)