Use the paragraph in the box below to answer the following questions: Mr. Obasi is a Nigerian businessman whose company is contemplating whether or not to purchase a certain capital good locally or to import
it from a neighboring nation. He compares the purchase price of the good in his country with the purchase price charged by the other
country. He discovers that the foreign price is in a different currency.
Which of the following will have the MOST influence on Mr. Obasi's decision, provided there are no trade barriers?
A. The cost of raw materials and tariffs
B. The cost of raw materials and sanctions
C. Baseline cost of the item and trade laws
D. Baseline cost of the item and exchange rate