Author Question: In the graph above, which points reflect an interest parity arbitrage opportunity? A) point A B) ... (Read 77 times)

craiczarry

  • Hero Member
  • *****
  • Posts: 527
In the graph above, which points reflect an interest parity arbitrage opportunity?
 
  A) point A
  B) point B
  C) point C
  D) points B and C

Question 2

Suppose an MNC subsidiary buys 100 input units from its parent at a price of 2 each. It has 300 in additional production costs, and sells its 100 units of output for 6 to the MNC. It pays a 25 local profit tax.
 
  The MNC sells the output at home for 8, and its cost of producing inputs is 1 . It pays a profit tax of 20 at home on repatriated profits. What is the subsidiary net profit? Assume no selling costs at home. What is the MNC's total profit from the operation?



ashely1112

  • Sr. Member
  • ****
  • Posts: 347
Answer to Question 1

D

Answer to Question 2

75; 360



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

For a complete list of videos, visit our video library