A Swiss firm can borrow in Switzerland at 10 percent and in the U. S. at 8.5 percent. A U. S. firm can borrow in Switzerland at 10.5 percent and in the U. S. at 8.5 percent. Which firm has a comparative advantage in which currency The:()
A. Swiss firm has a comparative advantage borrowing in the U. S.
B. Swiss firm has a comparative advantage borrowing in Switzerland.
C. U.S. firm has a comparative advantage in borrowing in the U. S.
参考答案:B
解析:
The interest rates are equal for borrowing in the U. S. , but the Swiss firm can borrow in Switzerland at a lower rate, thus giving the Swiss firm the comparative advantage in Switzerland.