6. Mr. Obasi is a Nigerian businessman whose company is contemplating whether or not to purchase a certain capital good locally or to import it from a neighboring nation. He compares the purchase price of the good in his country with the price changed by the other country. He discovers that the foreign price is in a different currency. Which of the following will have the MOST influence on Mr. Obasi’s decision, provided there are no trade barriers? A the cost of raw materials and tariffs
B the cost of raw materials and sanctions
C baseline cost of the item and trade laws
D baseline cost of the item and exchange rate