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 380 times)

frankwu

  • Hero Member
  • *****
  • Posts: 549
on: Mar 14, 2021
If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 5 rand/US$, 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 frankwu on Mar 14, 2021

nikmaaacs

  • Sr. Member
  • ****
  • Posts: 335
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


frankwu

  • Member
  • Posts: 549
Reply 2 on: Mar 14, 2021
Excellent

nanny

  • Member
  • Posts: 313
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

An old wooden cart, piled with rabbit skins, in New South Wales, Australia An old wooden cart, piled with rabbit skins, in New South Wales, Australia
Increasing Costs of Natural Disasters Increasing Costs of Natural Disasters
Members of the Lemba ethnic group from southern Africa. Members of the Lemba ethnic group from southern Africa.
Population of Major Civilizations of Europe, Asia, and Africa, AD 1500 Population of Major Civilizations of Europe, Asia, and Africa, AD 1500
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.
West facade, Cha1134–1220; south spire, ca. 1160; north spire 1507–13. West facade, Cha1134–1220; south spire, ca. 1160; north spire 1507–13.
Video: Enzyme structure - Properties of enzymes

For a complete list of videos, visit our video library