suppose that sandile, a south african trader, imports goods from china and sells them in south africa. suppose also that the rand appreciates against the yuan. how would this impact sandile’s business?

If the South African Rand appreciates against the Chinese Yuan, it means the Rand has increased in value relative to the Yuan. This appreciation makes Chinese goods cheaper for Sandile when priced in Rand because he needs fewer Rand to buy the same amount of Yuan. Consequently, the cost of importing goods from China decreases for Sandile

. This reduction in import costs can benefit Sandile's business in several ways:

• Sandile can purchase more goods for the same amount of Rand, effectively lowering his import expenses.
• He may increase his profit margins if he keeps selling prices constant.
• Alternatively, he could reduce the selling prices of imported goods in South Africa, making them more competitive and potentially increasing sales.
• Overall, the appreciation of the Rand against the Yuan improves Sandile's purchasing power for imports, positively impacting his business

In summary, the Rand appreciating against the Yuan lowers Sandile's import costs and can enhance his business profitability or competitiveness in the South African market.