The price of sooer balls in the united statos is $30 and the price of soccer bails in mexico is $450 pesos. if the theory of purchasing power parity is correct, the exchange rate should be:

a. $1 = 15 pesos
b. $1 = 10 pesos
c. $10=1 peso
d. $15=1 peso
e. none of the above exchange rates is correct

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.