1. For this week's discussion, assume that you work for a firm with business operations in Mexico. Given the factors that affect the value of a foreign currency, describe the type of economic or other conditions in Mexico that could cause the Mexican peso to weaken and thereby adversely affect your business.

• Discuss which of these factors might be more likely to occur and how they would affect your firm's operations. Be sure to consider both macroeconomic conditions that might change as well as what types of intervention techniques might be used by either (or both) Mexico and the United States.