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 402 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
Great answer, keep it coming :)

ryhom

  • Member
  • Posts: 366
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Spotted hyena cubs in Limpopo, South Africa. Spotted hyena cubs in Limpopo, South Africa.
East Africa-Arabia: An Example of Modern Rifting East Africa-Arabia: An Example of Modern Rifting
Population Losses in the South, 1920–1930 Population Losses in the South, 1920–1930
Yinka Shonibare MBE, Nelson's Ship in a Bottle, Fourth Plinth, Trafalgar Square, London. Yinka Shonibare MBE, Nelson's Ship in a Bottle, Fourth Plinth, Trafalgar Square, London.
Jabiru (Jabiru mycteria) dancing. South Pantanal, Brazil. Jabiru (Jabiru mycteria) dancing. South Pantanal, Brazil.
The migration of modern humans out of Africa The migration of modern humans out of Africa
Video: Protein digestion - stomach & small intestine

For a complete list of videos, visit our video library