A US based computer manufacture produces and sells laptops in South America through two manufacturing facilities: one in Argentina and the other in Brazil. The following applies:

	Argentina	Brazil
Investment price	200 million US$	200 million US$
Cost per Laptop	900 pesos	600 reals
Price per Laptop	1200 pesos	800 reals
Projected Annual Earnings	150 million pesos	100 million reals
Exchange Rate	Pesos 3 / US$	Reals 2/US$

If Brazil real depreciates 20% against the US$, which investment grnerates a greater return if all other factors remain the same?

		Brazil
		Argentina
		Both are the same
		None of above

A US based computer manufacture produces and sells laptops in South America through two manufacturing facilities: one in Argentina and the other in Brazil. The following applies:

	Argentina	Brazil
Investment price	200 million US$	200 million US$
Cost per Laptop	900 pesos	600 reals
Price per Laptop	1200 pesos	800 reals
Projected Annual Earnings	150 million pesos	100 million reals
Exchange Rate	Pesos 3 / US$	Reals 2/US$

What is the mark-up on the laptop in Argentina as a percentage of the cost?

		15%
		20%
		25%
		33%