Business, 10.04.2020 21:09 saucyboyFredo

Suppose that an ounce of gold sells for $2000 in the United States and 1000 euros in France. A euro currently trades for $1.50 . it costs $100 to ship an ounce of gold between the two countries. Assume it is legal to buy and ship gold in both countries. Then:.
a. it is not possible to profit from international arbitrage.
b. you can profit by buying gold in the United States and shipping it to France.
c. you can profit by buying gold in France and shipping it to the United States.
d. the price of gold will rise in the United States. e. the dollar will appreciate.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 17:00

Problems and applications q3 suppose the demand for french bread falls. illustrate the effect this has on the market for french bread. demand supply price of french bread quantity of french bread d 1 d 2 supply producer surplus in the market for french breadincreases . illustrate the effect the quantity change in french bread has on the market for flour. demand supply price of flour quantity of flour d 1 d 2 s 1 s 2 producer surplus in the market for flour .

Answers: 1

Answer

Business, 21.06.2019 22:20

Why should you not sign the tenant landlord agreement quickly and immediately

Answers: 1

Answer

Business, 22.06.2019 14:50

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of

Answers: 3

Answer

Business, 22.06.2019 19:40

The martinez legal firm (mlf) recently acquired a smaller competitor, miller and associates, which specializes in issues not previously covered by mlf, such as land use and intellectual property cases. given the increase in the firm's size and complexity, it is likely that its internal transaction costs willa. decrease. b. increase. c. become external transaction costs. d. be eliminated.

Answers: 3

Answer

You know the right answer?

Suppose that an ounce of gold sells for $2000 in the United States and 1000 euros in France. A euro...

Questions

Business, 18.06.2021 23:30

Carrie flew to Toronto on a business trip. The purchase price of the ticket was $679 and it was bought from a travel agency on account. The entry to...