Question
Company A can borrow yen at 14.1 percent and dollars at 13.2 percent. Company B can borrow yen at 15.5 percent and dollars at 13.667
Company A can borrow yen at 14.1 percent and dollars at 13.2 percent. Company B can borrow yen at 15.5 percent and dollars at 13.667 percent. At what interest rates, do company A and B respectively have a comparative advantage?
a.A; 13.2 percent, B: 15.5 percent
b.A: 14.1 percent, B: 13.667 percent
c.B has comparative advantage in both markets
d.A has a comparative advantage in both markets
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
