Use the (Hypothetical) Information in the Following Table to Answer

question 365

Multiple Choice

Use the (hypothetical) information in the following table to answer the following questions.Table 18-2
$\begin{array}{|l|l|c|l|c}\hline \text { Country } & \text { Currency } & \begin{array}{l}\text { Currency per } \\\text { U.S. Dollar }\end{array} & \begin{array}{l}\text { U.S. Price } \\\text { Index }\end{array} & \begin{array}{l}\text { Country Price } \\\text { Index }\end{array} \\\hline \text { Bolivia } & \text { boloviano } & 8.00 & 200 & 1600 \\\hline \text { Japan } & \text { yen } & 80.00 & 200 & 20,000 \\\hline \text { Morocco } & \text { dinar } & 10.00 & 200 & 2,000 \\\hline \text { Norwegian } & \text { kroner } & 6.5 & 200 & 1,500 \\\hline \text { Thailand } & \text { baht } & 40.00 & 200 & 7,000 \\\hline\end{array}$

-Refer to Table 18-2. Which currency(ies) is(are) less valuable than predicted by the doctrine of purchasing-power parity?

• A)boloviano and dinar
• B)yen and kroner
• C)baht and kroner
• D)baht

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Definitions:

Capital

In economics, capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production and facilities.

Risk-Averse

The preference to avoid taking risks, favoring safer or more predictable outcomes over potentially higher but riskier rewards.

Exporting

Exporting is the process of selling goods or services produced in one country to buyers in other countries.

Global Segmentation

Global segmentation involves dividing a market into distinct groups of consumers with shared characteristics across international borders to tailor marketing efforts.