Want to ask about aprity conditions in International finance

QUESTION: Today is May 31, 2016. Assume you are an investor with considerable experience in imports. Because of this, you wish to invest in import-oriented companies located either in the Euro Area or the United States. You have gathered information and it is your belief that the current competitive conditions (as reflected in the data shown in tables 1 and 2) will remain in place for the next five years. If your investment horizon covers the next five years, please answer the following questions:
 
1. Where would you invest and why?

Annual Inflation (last 12 months)*
U.S. 0.00%
Euro Area 0.30%


Table 2: Currency Spot Rates
USD/EUR
Spot (May 31, 2015) 1.3608
Spot (May 31, 2016) TODAY 1.1265

thesid
Asked May 26, 2017

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