10. Country A is excellent in producing cars and computers. Country B is good at producing cars and fair in producing computers. Country B is said to have a relative comparative advantage in?

Neither cars nor computers

Computers

Cars

11. Assume a Japanese firm invoices exports to the US dollars. Assume that the forward rate and spot rate of the Japanese yen are equal. If the Japanese firm expects the yen to ______ against the dollar, it would likely wish to hedge. It could hedge by_____ yen forward.

Appreciate; selling

Appreciate; buying

Depreciate; buying

Depreciate; selling

12. suppose you have the following exchange rates: 1) $1.155C$ and E.7294/$. Computer the cross exchange rate with the Canadian dollar as the terms currency and the Euro as the base currency.?

E .8425/C$

C$1.5835/E

C$1.1870/E

E .6315/C$