Question: Company A can borrow yen at 15

Subject:FinancePrice: Bought3

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Question:

Company A can borrow yen at 15.1 percent and dollars at 14.0 percent. Company B can borrow yen at 13.8 percent and dollars at 13.567 percent. At what interest rates, do company A and B respectively have a comparative advantage?

a. B has comparative advantage in both markets.

b. A: 15.1 percent, B: 13.567 percent

c. A: 14.0 percent, B: 13.8 percent

d. A has a comparative advantage in both markets.