Suppose the quoted spot rates are EUR$0\mathrm{.}951/$USD and JPY$141\mathrm{.}52/$USD$.$ You are a U$.$S$.$ citizen that has recently graduated and applied for three corporate treasury roles with the following MNCs and are weighting up the offers they have provided you:

$-$ Adidas $($German$)$: EUR$129,000$ p$.$a

$-$ Asics $($Japan$)$: JPY$19,360,000$ p$.$a$.$

$-$ Nike $($US$)$: USD$135,000$ p$.$a

The cost of a basket of goods in the US is currently USD$11,737.$ Rank these job offers from least to most attractive. To accept the job offer you must reside in the country in which the company operates. Suppose you$$re indifferent between living in Germany, the US and Japan.

Question $6$Answer

a$.$

Nike, Adidas, Asics

b$.$

Adidas, Nike, Asics

c$.$

Adidas, Asics, Nike

d$.$

Asics, Nike, Adidas

e$.$

Asics, Adidas, Nike

f$.$

Nike, Asics, Adidas

g$.$

All offers are equally attractive