Question 6 1 pts Generally unfavorable evidence on purchasing power parity (PPP) suggests that transportation costs can make it difficult to directly compare commodity prices Efficiency of the internal market of large multinational corporations fail to overcome any barriers to international commodity market Countries should adjust GDP for the PPP value to make comparison of standards of living between countries more meaningful the range of goods and services considered for price level comparison across countries is not wide enough the global foreign exchange market is very efficient Question 5 1 pts Which of the following statements is FALSE? Covered Interest Arbitrage (CIA) activities results in restoring equilibrium prices quickly. If the forward rate is unbiased, then it should reflect the expected future spot rate. If international capital markets are fully integrated, real interest rates should be the same across countries. If a foreign country experiences a hyperinflation, its currency should appreciate against stable currencies The benefit to forecasting exchange rates accrues to, and are a vital concern for, MNCs formulating international sourcing, production, financing and marketing strategies