Suppose That Beef Sells For Us 15 Per Kg In The Usa And A 20 Per Kg In Australia

Suppose that beef sells for US$15 per kg in the USA and A$20 per kg in Australia.

– Where would you buy beef if the exchange rate was A$1.2 per US$1, and where would you resell beef if you wanted to make a profit? (Assume there are no transport costs, trade barriers or taxes.)

Posted in Uncategorized