1. The state that an competitive markets free of transportation costs and barriers to identical trade (such as tariffs), products sold in different countries when must sell for the same price their price is expressed in terms of the same currency.

Q: A. As an MNC, when would you use the spot rate? Explain your answer. B. If our MNC currency's is…

A: Survival is one of the main motives of business, and to survive it is necessary to grow. MNCs are…

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A: Interest rate parity states that the difference between the interest rate of two currencies would b…

Q: of the following best represents the primary economic and financial benefit to the U.S. from NAFTA?…

A: The NAFTAwhich is North American free trade agreement and was enacted in order to create benefits…

Q: Compared to other methods of international business, exporting generally results in ____ exposure to…

A: International political risk refers to the potential for political events or decisions in a foreign…

Q: Explain what Purchasing Power Parity is and whether it actually provides a clear explanation of what…

A: Purchasing Power Parity Purchasing Power parity or PPP is an economic theory that compares the…

Q: Although international trade might have approached the comparative advantage model during the…

A: Comparative advantage model - The main rationale of the theory of comparative advantage is to…

Q: Suppose America experiences a negative balance on goods and services (imports higher than exports.)…

A: Where any currency depreciated, it will affect price of goods and services.

Q: Explain why nations trade, using the Heckscher-Ohlin model. Further, explain the pattern of trade…

A: Trade is the voluntary exchange of goods and services between various economic agents. Both parties…

Q: If the United States and Mexico engage in substantial trade and capital flows, which factors are…

A: Exchange rate fluctuations are driven by many factors including demand and supply. Exchange rates…

Q: QUESTION 2 A difference between a quota and a tariff is that a tariff generates a greater reduction…

A: A tariff is a tax on imports whereas a quota is a limit imposed on the quantity that can be…

Q: Devalued currency may be a good reason for a country to:   a. import.   b. export.   c.…

A: Devaluation is referred to as the adjustment in a country's currency value in a downward trend. It…

Q: Explain how increases and decreases in exchange rates between 2 countries might impact business and…

A: Exchange rate is referred as the rate, where one currency will get exchanged with regard to another…

Q: Shipping channels can significantly impact global economic integration, export service, and world…

A: Logistics is a key factor in international trade. Shipping refers to transferring goods by sea and…

Q: Global trade increases dependence on one economy, increasing the economic risk for multinational…

A: Global Trade: The import and export of products and services that take place across international…

Q: 14. Which of the following combinations correctly describes the relationship between foreign…

A: When a country X imports products from country Y, it creates a foreign currency payable account. If…

Q: purchasing power parity states that the difference between changes over time in product-price levels…

A: - Current Purchasing Power (C.P.P.) is also called as General Price-Level Accounting.  General…

Q: imposition of a tariff on imports by a small nation leads to  a. An outward (towards the axis of its…

A: when there is a small country it means that import are very small share of the world's market source…

Q: Which of the following is not among the advantages of international trade? * O Increased competition…

A: International trade means where one country can sell goods in another country.

Q: Which of the following is not a reason for U.S. firms operating in foreign markets? A.Better…

A: Following are the reason for US firms operating in foreign markets-

Q: When trading across borders, firms choose between different payment contracts. In particular, an…

A: The choice of international payment methods involves considerations such as the trust between the…

Q: If a country devalues its currency, it is implementing an implicit___ policy on exporters and an…

A: The objective of the question is to understand the implicit policies that a country is implementing…

Q: Direct foreign investment into the United States represents a ____.     capital outflow…

A: Cashflow means movement of cash. This movement can be positive or negative. Positive movement means…

Q: Methods of entering a foreign market, including the advantages and disadvantages of each.

A: There are several methods that companies can use to enter a foreign market, each with its own…

Q: Identify a product that  would be interested in importing and selling here in the U.S.   What is…

A: Solution is given here below.

Q: A foreign subsidiary with more revenue than expenses impacted by foreign currency exchange rate…

A: A foreign subsidiary, sometimes known as a parent or holding company, is a company that operates…

Q: A). Why do we need to translate the financial statement of foreign operations?

A: Note:"Since you have asked multiple questions, we will solve the first question for you. If you want…