If the Rate of Return Is 1 Percent in Mexico

question 129

Multiple Choice

If the rate of return is 1 percent in Mexico and 3 percent in Canada, the

• A) law of one price predicts a single international rate of return between 1 percent and 3 percent.
• B) Mexican peso is expected to depreciate against the Canadian dollar by 2 percent.
• C) Mexican peso is expected to appreciate against the Canadian dollar by 2 percent.
• D) rate of return in Mexico is expected to rise to 3 percent.
• E) rate of return in Canada is expected to fall to 1 percent.

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Definitions:

Corrupt

Engaged in dishonest, unethical, or fraudulent activities, often involving bribery or manipulation, to gain personal or organizational advantage.

Production Manager

An individual responsible for overseeing the production process in a manufacturing plant or company, ensuring efficient operations and meeting production targets.

Company's Union

An organization formed within a company by its employees to negotiate with the management over labor rights and working conditions.

NLRB

The National Labor Relations Board, an independent US government agency responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.