The exhibit below shows quoted fixed borrowing rates (adjusted for taxes) in two different currencies for two different firms Yen Pounds Company A 2 4 Company B 3 5 5 Which of the following is true Question options 1) Company A has a comparative advantage borrowing in both yen and pounds 2) Company A has a comparative advantage borrowing in pounds 3) Company B has a comparative advantage borrowing in yen 4) More than one of the above is true

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Question: The exhibit below shows quoted fixed borrowing rates (adjusted for taxes) in two different currencies for two different firms: Yen Pounds Company A 2% 4%

The exhibit below shows quoted fixed borrowing rates (adjusted for taxes) in two different currencies for two different firms: Yen Pounds Company A 2% 4% Company B 3% 5.5% Which of the following is true?

Question options:

1)	Company A has a comparative advantage borrowing in both yen and pounds.

2)	Company A has a comparative advantage borrowing in pounds.

3)	Company B has a comparative advantage borrowing in yen.

4)	More than one of the above is true

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