A pair of shoes in the united states costs


Assignment:

1. If a pair of shoes in the United States costs $45, and a pair of the exact same shoes is sold in Mexico for 430 pesos while the exchange rate is E = $0.1100/pesos, what arbitrage opportunities exist (if any)? Ignoring transactions costs, explain how you would take advantage of this.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: A pair of shoes in the united states costs
Reference No:- TGS01794672

Expected delivery within 24 Hours