In France, the Price of a Computer Is 1,227

question 431

Multiple Choice

In France, the price of a computer is 1,227.6 euros. In Japan, the price of the same computer is 137,920 yen. If a U.S. dollar can buy 1.023 euros or 119.93 yen, then purchasing power parity
)

• A) is equal to interest rate parity and the computer is cheaper in North America
• B) does not hold and the computer is cheaper in Japan
• C) does not hold and the computer is cheaper in France
• D) holds and the computer is the same price everywhere

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Definitions:

Expatriate

An individual who lives and/or works in a country other than their country of citizenship, often temporarily and for professional reasons.

International Commuters

Employees who live in one country but work in another, regularly traveling between the two for their job.

Adaptive IHRM Approach

HRM systems for foreign subsidiaries that will be consistent with the local economic, political, and legal environment.

Foreign Subsidiaries

Companies that are partially or wholly owned by a parent company but operate in a country different from the parent company's location.