Consider two companies. Company A can borrow euros (EUR) at 5.5% or dollars (AUD) at 4.5%. Company B can borrow EUR at 7.5% or AUD at 7.0%. EACH of the following is TRUE except:

a.

Company B has a comparative advantage borrowing euros (EUR)

b.

Company A has a comparative advantage borrowing dollars (AUD)

c.

Company A has an absolute advantage in both markets

d.

Company B has a comparative advantage in neither market