Question
INTERNATIONAL FINANCE (Please provide answers with calculations. Thank you) 1. Below table compare the price of a robot vacuum cleaner, in London and Sweden. Price
INTERNATIONAL FINANCE
(Please provide answers with calculations. Thank you)
1. Below table compare the price of a robot vacuum cleaner, in London and Sweden.
| Price in London (GBP) | Price in Sweden (Swedish Krona) | Actual Interest Rate |
| 100.00 | kr 980 | GBP / SEK = 11.65 |
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- Determine if the robot vacuum cleaner in both countries being priced equally. (4 marks)
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- Is the robot vacuum cleaner in Sweden undervalued or overvalued? (2 marks)
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- Calculate the implied Purchasing Power Parity (PPP) rate of exchange based on the two product prices. (4 marks)
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- Calculate the percentage of the robot vacuum cleaner in Sweden being undervalued or overvalued. (4 marks)
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Budgets And Financial Management In Higher Education
Authors: Margaret J. Barr, George S. McClellan
3rd Edition
1119287731, 9781119287735
