Question

Blackboard --> XCO Remaining Time: 1 hour, 08 minutes, 24 seconds. Question Completion Status According to the PPP theory, if the actual exchange rate between the Argentine peso and the US dollar is Peso 28/51, and the implied exchange rate based on the PPP is Peso 14/51, then we can conclude that the Argentine peso is 50% undervalued the Argentine peso is 10% undervalued. the Argentine Peso is 28% undervalued the Argentine peso is 50% overvalued QUESTION 3 According to the topic of information Technology and International Business." what are the basic features of information goods? Digitization and ease of dissemination (can be replicated and transmitted on an extremely large scale and fast speed). Lack of reliability and ease of dissemination (can be replicated and transmitted on an extremely large scale and fast speed). Ease of dissemination (can be replicated and transmitted on an extremely large scale and fast speed) and high costs. Click Save and submit to save and submit. Click Save All Anners to save all answers,

Answer 1

1. According to PPP Theory 1 $ equals 14 Peso whereas the actual exchange rate as per market forces is 1$ = 28 Argentina Peso. It means that actual exchange rate between the two currencies is 50% more than the implied exchange rate as per PPP Theory. Thus we can conclude that Argentina Peso is 50% overvalued.

2. Technology has played an important role in every aspect of work being carried out. Information goods has both advantages and disadvantages as well. Basic features of information goods is that it is digitised and can be easily and speedily transmitted.The answer to the above question is a.Digitization and ease of dissemination(can be replicated and transmitted on an extremely large scale and fast speed).