The above figure shows a payoff matrix for two firms, A and B, that must choose between a high-price strategy and a low-price strategy. For firm B
A) setting a high price is the dominant strategy.
B) setting a low price is the dominant strategy.
C) there is no dominant strategy.
D) doing the opposite of firm A is always the best strategy.
B
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Assuming the United States is the "domestic" country, if the real exchange rate between the United States and Russia decreases from 28 to 23,
A) the prices of U.S. goods and services have increased by 22% relative to Russia. B) the prices of U.S. goods and services have decreased by 5% relative to Russia. C) the prices of U.S. goods and services have increased by 25.5% relative to Russia. D) the prices of U.S. goods and services have decreased by 18% relative to Russia.
An example of direct foreign investment is given by
A) the sale of U.S. government bonds to foreigners. B) the sale of General Motors bonds to foreigners. C) the behavior of multinational corporations such as Ford. D) all of the above.