Question
a)Let's assume I want to buy an Apple computer and the price of Apple is $1000 in Country A and $1100 in Country B. You
a)Let's assume I want to buy an Apple computer and the price of Apple is $1000 in Country A and $1100 in Country B. You have access to both Country A and Country B shopping sites. There are no transaction costs or taxes. Which country would you buy the computer from? You're a smart finance student and you realize one additional thing you can do. What else seems possible? What is this concept called (say the word and explain it with your own words - no need to calculate anything if you don't want to)? (10 points)
b)As a financial manager would you be interested in purchasing another company abroad? Why or Why not? In addition to our usual business risk and financial risk what additional risks would you have to consider when planning to make an investment in another country? (10 points)
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