Suppose that you are trying to decide between two job offers. One consulting firm offers you $150,000
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Suppose that you are trying to decide between two job offers. One consulting firm offers you $150,000 per year to work out of its New York office. A second consulting firm wants you to work out of its London office and offers you £100,000 per year. The current exchange rate is $1.65/£. Which offer should you take, and why? Assume that the PPP exchange rate is $1.40/£ and that you are indifferent between working in the two cities if the purchasing power of your salary is the same.
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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We should use the PPP exchange rate to compare the ...View the full answer
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Related Book For 
International Financial Management
ISBN: 978-0132162760
2nd edition
Authors: Geert Bekaert, Robert J. Hodrick
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