I believe the answer to your question is C.
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Answer:
A) formal institutional frameworks erected by the host-country government.
Explanation:
In this case, Wales is considered the host country since Widget Corp.'s home country is Lithuania. Taxes imposed by governments are institutional frameworks, they are not informal rules of the game.
The taxes imposed by Wales are called import tariffs and they are used to increase the price of imported goods and services.
Answer:
If RUS > RUK, then E < F ( C )
Explanation:
RUS = annual risk free rate in united states
RUK = annual risk free rate in United kingdom
F = futures price of $/BP for 1 year
E = spot exchange rate for $/BP
To get a higher the future price
this conditions must be met
The annual risk free rate of the united states must be higher than the annual risk free rate of the united kingdom. if this condition is met then the the British pound will have a forward premium ( F ) > ( E )
This statement above would be known to be called a (true/false) question, and based on my information, this statement above would be known to be a "true" statement. This would be true in many marketing companies that would be out there. They would always contain a strategy for each nation, and therefore this would then resolve to which a company would produce it's market productions.
Your answer: True