A U.S. company that makes all of its goods at a plant in Brazil and then exports the Brazilian- made goods to those European markets where the currency is euros o stands to become more profitable (in terms of U.S. dollars) when the U.S. dollar appreciates in value against the Brazilian real. O is unaffected by changes in the valuation of the euro against the Brazilian real--all that matters to a U.S. company is the valuation of the U.S. dollar against the Brazilian real. O is competitively advantaged when the Brazilian real declines in value against the euro. o is competitively disadvantaged when the U.S. dollar declines in value against the Brazilian real. o becomes less cost competitive in selling its exported goods in euro-based European markets when the Brazilian real declines in value against the euro