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 400 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
Gracias!

xiazhe

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

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.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Beautiful white Lion in Easter Cape, South Africa Beautiful white Lion in Easter Cape, South Africa
Black and White Out-Migration from Virginia and North and South Carolina, 1870–1940 (in thousands) Black and White Out-Migration from Virginia and North and South Carolina, 1870–1940 (in thousands)
Saint Augustine (354–430). Christian philosopher and bishop of Hippo in Northern Africa. ... Saint Augustine (354–430). Christian philosopher and bishop of Hippo in Northern Africa. ...
How to calculate fuel costs How to calculate fuel costs
Political Map of Africa in 2015 (2015 الخريطة السياسية لأفريقيا) Political Map of Africa in 2015 (2015 الخريطة السياسية لأفريقيا)
Tuition Costs Tuition Costs
Video: Gastrin (protein digestion)

For a complete list of videos, visit our video library