Chapter 11 question 6

"A clever entrepreneur can swap dollars for pesos, buy cheap Sony televisions in Mexico, and then sell them for a profit back in the United States"(Wheelan249).  This passage caught my attention because it illustrates how people have the power to shift the exchange rate. Obviously not one entrepreneur but if many others followed the first. Wheelan goes on to say that if this particular example happened on a large scale these people could potentially change the value of the peso.  After this Wheelan goes on to talk about how this can only happen with trade able goods. Some examples of non-tradable goods are child care and hair cuts because they need to be bought and sold in the same location.