b) The iPhone 12 costs Rs. 79,900 in India, $830 in the U.S. (roughly 60,900), JPY...

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b) The iPhone 12 costs Rs. 79,900 in India, $830 in the U.S. (roughly 60,900), JPY 85,800 (roughly Rs. 59,800) in Japan and CAD 1,129 (roughly Rs. 63,000) in Canada. You are told that the nominal exchange rates are 74.55 Rs/$, 104.66 JPY/$ and 1.33 CAN/$. i. Where would you buy the Iphone if you could magically be in the 4 countries today? Can you explain the difference in prices, if any? To what theory does it relate to? ii. iii. b) The iPhone 12 costs Rs. 79,900 in India, $830 in the U.S. (roughly 60,900), JPY 85,800 (roughly Rs. 59,800) in Japan and CAD 1,129 (roughly Rs. 63,000) in Canada. You are told that the nominal exchange rates are 74.55 Rs/$, 104.66 JPY/$ and 1.33 CAN/$. i. Where would you buy the Iphone if you could magically be in the 4 countries today? Can you explain the difference in prices, if any? To what theory does it relate to? ii. iii.

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SOLUTION i If we compare the prices of the iPhone 12 in different countries and convert them into a ... View the full answer