Japanese yen/swiss franc Y 74.50/SF

SF/US dollar SF 1.28/$

Jap Yen/US dollar Y 100/$

You have 100,000 available can you make money by triangular arbitrage? How much?

If Big Mac costs 50 Czech Koronas in Praugue and 30 Austrian schillings in Vienna, then the implicit exchange rate is:

a. .6000 CKR/SCH

b. 1.667 CKR/SCH

c. .6667 SCH/CKR

d. Both a and B

e. None

THe parent of a foreign subsidiary or affilliate will most likely accelerate the rate at which is transfers earnings and cash flows to the parent firm if:

a. it feels foregn host country is becoming politically unstable

b. intra firm payables in host countries currency, which is depreciating

c. income tax rate in home country higher than those in foreign host country