If a Japanese DVD player priced at 12,000 yen can be purchased for \(\$ 60\), the exchange rate is (LO3) a) 200 yen per dollar. d) 200 dollars per yen. b) 20 yen per dollar. e) none of the above. c) 20 dollars per yen.

International economics is a field of study that analyzes the flow of goods, services, capital, and labor across different countries. It encompasses the theories of trade, the impact of exchange rate movements, and the structure of international markets. Understanding how exchange rates are calculated and their implications is a fundamental aspect of international economics. As seen in the exercise, the exchange rate affects the price one pays for imported goods, like the Japanese DVD player. Fluctuations in exchange rates can impact the trade balance between nations and their economic stability.

For students learning international economics, grasping the concept of exchange rates is crucial as it helps comprehend the dynamic interactions between national economies in our globalized world. When solving economic problems, considering the exchange rate helps students appreciate the complexities and the interconnected nature of international trade activities.

Currency exchange is the process of converting one country's currency into another's, facilitating international trade and finance. In the context of the provided exercise, exchange rate calculation plays a central role. The rate at which one currency can be exchanged for another (such as yen to dollars, or vice versa), directly affects international pricing and purchasing decisions.

In the simple scenario presented, where a Japanese DVD player's price in yen and its equivalent price in dollars is given, the exchange rate calculation is an essential skill. By dividing the local currency amount by the foreign currency equivalent, one can find the exchange rate, demonstrating how much local currency is needed to purchase one unit of foreign currency. Remember, the direction of this conversion matters—a common point of confusion among students—which is why the exercise distinguishes between yen per dollar and dollars per yen.

Economic problem solving involves identifying economic questions and analyzing information to reach a solution. The step-by-step solution in the exercise exemplifies a systematic approach to problem-solving, which is particularly useful in economics. The process began with understanding the problem - determining the correct exchange rate. Next, setting up an equation allowed for the translation of a real-world problem into a mathematical one, which is a common and effective strategy in economics.

Solving the equation provided a numerical answer that could be compared against the possible options, leading to an informed decision. For students, mastering such a structured methodology not only helps in accurately solving textbook exercises but also in approaching a variety of economic problems that require logical reasoning and quantitative analysis. These skills are transferable to more complex economic analyses, making them invaluable for any aspiring economist or individual working in finance-related fields.