Question
1)(3 pts) Lubbock Inc. produces furniture and has no international business.Its major competitors import most of their furniture from Brazil and then sell it out
1)(3 pts) Lubbock Inc. produces furniture and has no international business.Its major competitors import most of their furniture from Brazil and then sell it out of retail stores in the US.How will Lubbock Inc. be affected if Brazil's currency strengthens over time?
2)(3 pts) Fischer Inc., exports products manufactured in Florida to Europe. It obtains supplies and borrows funds in US dollars, but prices and receives payment in Euros for the manufactured goods its exports to Europe. How would appreciation of the euro likely affect its net cash flows? Why?
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