strikethree

1. 2.001*1.04/1.07 = 1.9449 - 1.9450 $/JOD B
2. I am inclined to go with B.
Country B has the advantage for Foodwrt A. Though A does not have the advantage for Drink, if both companies produced - and traded - profits would be higher. That is my reasoning for B.
3. Based on IRP - Forward Baht = 0.02279 (0.02312*1.045/1.06)
Forward is Underpriced.
To take advantage - Buy Forward, (which means Short Sell Spot).
Borrow 1000000 $ convert to Baht at Spot - 43252595.16
Lend forward - * 1.06 = 45847750.87
Convert @ 0.02200 - 1008650.52 $
Need to return 1000000*1.045 = 1045000 $
Profit = 1008650.52 - 1045000 = 36349.48 - Ans B.