How could you profit from a situation in which the cost of t-shirts was 15 dollars in Canada, 10 euros in Spain, and the exchange rate was 2 dollars per euro?
A) Buy t-shirts in spain and sell them in Canada.
B) There is no opportunity for profit in this example.
C) Sell Canadian dollars to buy euros and wait for the value of the euro to rise.
D) Buy t-shirts in Canada and sell them in Spain.
E) Lobby the federal government to impose a tariff on Spanish made t-shirts.
Correct Answer:
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