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He starts with 1 rmb.In the US, wheat costs 0.5 rmb/kg which means he pays 0.5 rmb per kg of wheat. Since he has 1 rmb he can afofrd to buy 2 kg of wheat sinec 2*0.5=1.He now travels to China with the wheat for free (he must have alot of frequent flyer miles).He can sell the wheat for 1.5 rmb per kg.He has 2 kg of wheat so he sells it for 1.5*2=3 rmb.His net profit is 3 1 = 2 |
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