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An American firm imports aluminum for its operations from Mexico and sells its finished products to Japan. If the dollar appreciates against the peso and
An American firm imports aluminum for its operations from Mexico and sells its finished products to Japan. If the dollar appreciates against the peso and depreciates against the yen, which of the following will occur, all else being equal? The American firm's value will increase because it will pay less for its imports and it will be able to sell more of its goods to Japan. O The American firm's value will decrease because it will pay more for its imports and it will be able to sell less of its goods to Japan. O The American firm's value will be unaffected by the change in exchange rates. O None of the above
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