« previous next »

Author Question: In the graph above, which points reflect an interest parity arbitrage opportunity? A) point A B) ... (Read 65 times)

craiczarry

  • Hero Member
  • *****
  • Posts: 527
on: Jun 30, 2018
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
Reply #1 on: Jun 30, 2018
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
« previous next »
 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Graph of 3 compounds tested Graph of 3 compounds tested
A point-type ignition system showing the distributor cam which opens the points A point-type ignition system showing the distributor cam which opens the points
How to reflect the quadratic function relative to the x-axis How to reflect the quadratic function relative to the x-axis
How to use transformations to graph quadratic equations in vertex form How to use transformations to graph quadratic equations in vertex form
Spectrum of Food Security Food insecurity and hunger are points along the continuum Spectrum of Food Security Food insecurity and hunger are points along the continuum
Chelsea Donahue has a​ 20-year home mortgage of ​78,000 at​ 7.50% interest and will pay ... Chelsea Donahue has a​ 20-year home mortgage of ​78,000 at​ 7.50% interest and will pay ...
Video: Dendrite Animation

For a complete list of videos, visit our video library