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1. With the aid of appropriate illustrations discuss location arbitrage as it relates to international arbitrage theory. 2. Use appropriate illustrations to distinguish between the
1. With the aid of appropriate illustrations discuss location arbitrage as it relates to international arbitrage theory.
2. Use appropriate illustrations to distinguish between the internalization hypothesis and the rates of return hypothesis.
3. . Identify one exogenous variable in the interest rate parity model and discuss the effect of an increase in this variable on the spot exchange rate.
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