Suppose that the dollar buys less cotton in Canada than in Egypt. How could traders make a profit?
A) by buying cotton in Canada and selling it in Egypt, which would tend to raise the price of cotton in Canada
B) by buying cotton in Canada and selling it in Egypt, which would tend to raise the price of cotton in Egypt
C) by buying cotton in Egypt and selling it in Canada, which would tend to raise the price of cotton in Egypt
D) by buying cotton in Egypt and selling it in Canada, which would tend to raise the price of cotton in Canada

Question

Quizplus · Accepted Answer

Traders could buy cotton in Egypt where it is cheaper and sell it in Canada where it is more expensive, thus making a profit. This would increase demand and raise the price of cotton in Egypt.

Suppose That the Dollar Buys Less Cotton in Canada Than