1. Ford Mexicana, which is a subsidiary of Ford, imports cars from its US parent to Mexico and distributes them there. If the USD appreciates against Mexican Peso, Ford Mexicana's costs will go up in Peso terms. Whether this creates operating exposure for Ford critically depends on the structure of the car market in Mexico. Assume that Ford Mexicana faces import competition only from other car makers like General Motors and Chrysler, then Ford parent firm is to a high degree of operating exposure?

True

False