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2-Suppose a US firm was producing all its goods in Mexico and selling them in the Euro area, at a time when US dollar was

2-Suppose a US firm was producing all its goods in Mexico and selling them in the Euro area, at a time when US dollar was appreciating against both Euro and the Mexican Peso. During this period the net profit of this firm would:

A-Increase

B-Decrease

C-Not change much

3-If US imports from China were to decrease, but US exports to China did not change, this will cause the Chinese flow of capital into the US to:

A-decrease

B-increase

C-not change much

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