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Question 15 1 pts Suppose the price of a BigMac in the US is $3.25 while it is JY 290 in Japan and RMB 28

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Question 15 1 pts Suppose the price of a BigMac in the US is $3.25 while it is JY 290 in Japan and RMB 28 in China. According to the going exchange rate, one USD is equal to 100 yen and 8 RMB. Based on absolute PPP violations described above, the following strategy would work the best for a US company that O produces in the US and sells in Japan produces in China and sells in kapan o produces in China and sells in the US o produces in Japan and sells in China i pts Question 16 Suppose the annual inflation rate in the US is expected to be 2.5% while it is expected to be 18.00 in Mexico. The current spot ratefon 1/1/Xo) for the Mexican Peso (MXN) is $0.1000 According to purchasing Power Parity, expected percentage change in the price of the MXN during a one-year period should be 86 Question 15 1 pts Suppose the price of a BigMac in the US is $3.25 while it is JY 290 in Japan and RMB 28 in China. According to the going exchange rate, one USD is equal to 100 yen and 8 RMB. Based on absolute PPP violations described above, the following strategy would work the best for a US company that O produces in the US and sells in Japan produces in China and sells in kapan o produces in China and sells in the US o produces in Japan and sells in China i pts Question 16 Suppose the annual inflation rate in the US is expected to be 2.5% while it is expected to be 18.00 in Mexico. The current spot ratefon 1/1/Xo) for the Mexican Peso (MXN) is $0.1000 According to purchasing Power Parity, expected percentage change in the price of the MXN during a one-year period should be 86

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