Author Question: In the graph above, which points reflect an interest parity arbitrage opportunity? A) point A B) ... (Read 25 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?

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 immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

For a complete list of videos, visit our video library