Afew questions in this problem set are based on the comments made by james love to congress regarding antitrust policy and the petroleum industry. these are found at the end of the module on antitrust policy. try to read the entire article carefully and then see if you can answer the questions (rather than fishing out the answer each time). obviously you will go back and check to make sure you have it correct but to absorb the content it is best read it all first before going back. what is it about the petroleum industry that simultaneoulsy prevents entry and fosters joint ventures and other collaberations

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u. s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht. a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?