This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no ... (Read 267 times)

Hungry!

  • Hero Member
  • *****
  • Posts: 1,071
on: Mar 14, 2021
If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 20 rand/US$, then
◦ there is an arbitrage opportunity by buying the wine in the U.S., and selling it in South Africa and the price in South Africa will drop.
◦ there is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will drop.
◦ here is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will rise.
◦ there is no arbitrage opportunity.
Managerial Economics and Strategy ¦ Perloff, Brander ¦ 3rd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Hungry! on Mar 14, 2021

deja

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Mar 14, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 56% of students answer this correctly


Hungry!

  • Member
  • Posts: 1,071
Reply 2 on: Mar 14, 2021
YES! Correct, THANKS for helping me on my review

chjcharjto14

  • Member
  • Posts: 342
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Spur-winged Goose - De Hoop Nature Reserve, South Africa Spur-winged Goose - De Hoop Nature Reserve, South Africa
Change in Drawing Abilities from Early to Middle Childhood Drawings become more realistic as fine m Change in Drawing Abilities from Early to Middle Childhood Drawings become more realistic as fine m
The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own
Many former slaves understood that illiteracy was an implement of bondage. The Freedmen’s Bureau bui Many former slaves understood that illiteracy was an implement of bondage. The Freedmen’s Bureau bui
Workshop of Kane Kwei, Coffin in the shape of a film projector, Teshi area, Ghana, Africa. 2013. Workshop of Kane Kwei, Coffin in the shape of a film projector, Teshi area, Ghana, Africa. 2013.
Port Wine Stain Port Wine Stain
Video: Protein catabolism - deamination

For a complete list of videos, visit our video library