Suppose $1 = 10

question 16

Multiple Choice

Suppose $1 = 10.5 pesos in New York and $1 = 9.6 pesos in Mexico City. If you had $10,000 using arbitrage, your profits would be:

• A) $937.50.
• B) 937 pesos.
• C) 9,600 pesos.
• D) $790.

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Definitions:

Uncertainty Avoidance

A cultural dimension describing the extent to which societies tolerate ambiguity and uncertainty, influencing their norms, behaviors, and decision-making processes.

Nuclear Family

A family unit consisting of two parents and their children (biological or adopted), considered a basic social unit.

Social Structure

The organized pattern of social relationships and social institutions that constitute society.

Short-Term Orientation

A cultural or individual preference for immediate outcomes and gratification, focusing on the present rather than the future.