What was the likely impact of the strong Singapore dollar on U.S. electronics manufacturers using Singapore as an export platform?
In 1994, the Singapore dollar rose by 9% in real terms against the U.S. dollar. What was the likely impact of the strong Singapore dollar on U.S. electronics manufacturers using Singapore as an export platform? Consider the following facts: On average, materials and components—85% of which are purchased abroad—account for about 60% of product costs; labor accounts for an additional 15%; and other operating costs account for the remaining 25%.