Apex, Inc. is a U.S.-based firm that is in the process of buying a medium-sized company in
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Apex, Inc. is a U.S.-based firm that is in the process of buying a medium-sized company in Brazil. Because the Brazilian company sells its services to the global marketplace, revenues are dollar denominated. Its costs, however, are expressed in the Brazilian currency. If Apex anticipates a stronger dollar, which tends to decrease the value of the Brazilian currency, explain why the Brazilian company’s purchase price may be relatively insensitive to exchange-rate fluctuations.
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Related Book For
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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