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3 pts A U.S.firm has no subsidiaries and presently has sales to Mexican customers amounting to 120 million pesos, while its peso-denominated expenses amount to
3 pts A U.S.firm has no subsidiaries and presently has sales to Mexican customers amounting to 120 million pesos, while its peso-denominated expenses amount to 40 million pesos. If it shifts its material orders from its U.S. suppliers to Mexican suppliers, it could increase peso-denominated expenses by 10 million pesos and decrease dollar-denominated expenses by $750,000. This strategy would ____ the company's exposure to changes in the peso's movements against the U.S. dollar. Regardless of whether the firm shifts expenses, it is likely to perform better when the peso is valued relative to the dollar Increase: low reduce; low o increase: high reduce: high
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