Case study - Same product or value in different country but with different in currency. For example, USD10 and MYR10 for McD cheeseburger. Please relate using the 3 theories of IRP (Interest rate Party), PPP (Purchasing Power Parity), and IFE (International Fisher Effect). Also describe what is increased, what is decreased based on the interest rate, demand, inflation, price, etc the above mentioned relations.

Case study - Same product or value in different country but with different in currency. For example, USD10 and MYR10 for McD cheeseburger. Please relate using the 3 theories of IRP (Interest rate Party), PPP (Purchasing Power Parity), and IFE (International Fisher Effect). Also describe what is increased, what is decreased based on the interest rate, demand, inflation, price, etc the above mentioned relations.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter13: Direct Foreign Investment

Section: Chapter Questions

Problem 2IEE

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