Suppose you own a business in China that is negotiating with…

Suppose you own a business in China that is negotiating with a business in Thailand. A contract requires them to pay you in Baht in 3 months. You expect that the future spot rate will involve an appreciation of the Yuan against the Baht. Your interests are best served by an uncovered exchange rate.    

The following table illustrates what can be produced in 1 da…

The following table illustrates what can be produced in 1 day with the same stock of resources in France and Germany. Use the information to answer the following questions.     cheese  beef France 34 40 Germany 56 20 Based on the results from the previous question, we can see that: