i need the step by step process, and also the answers.
Use the following information for the next 2 questions. Deco Co. is a U.S. firm considers to establish a Mexican subsidiary that produces some electronic products in Mexico and sells them in Canada. This subsidiary pays its wages and its rent in Mexican pesos. The cell phones sold to Canada are denominated in Canadian dollar. Assume that Deco Co. expects that the Mexican peso will continue to stay stable against the dollar. The subsidiary's main goal is to generate profits for itself and it reinvests the profits. It does not plan to remit any funds to the U.S. parent. Decko Inc. would like to assess the country risk of Mexico first. Decko has identified various political and financial risk factors, as shown below. Political Risk Factor Blockage of fund transfers Bureaucracy Assigned Rating 3 5 Assigned Weight 6096 4096 Financial Risk Factor Interest rate Inflation Exchange rate Assigned Rating 5 4 1 Assigned Weight 5096 35% 1596 Question 8 (5 points) Decko has assigned an overall rating of 60 percent to political risk factors and of 40 percent to financial risk factors. Decko is NOT WILLING to consider Mexico for investment if the country risk rating is below 3.70. Should Decko consider Mexico for investment? Yes, since the overall rating calculated is 3.90 greater than 3.70. No, since the overall rating calculated is 3.40 smaller than 3.70. Yes, since the overall rating calculated is 4.05 greater than 3.70. Yes, since the overall rating calculated is 3.80 greater than 3.70. No, since the overall rating caltulated is 3.53 smaller 3.70. Question 9 (5 points) If Deco Co. establishes the subsidiary in Mexico and later finds out that the Mexican subsidiary needs to borrow money to finance its expansion, which currency should the Mexicane subsidiary borrow in order to reduce its exchange rate risk? OU.S. dollar Canadian dollar O Mexican Peso