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If a US firm exports to the UK and, following Brexit, the British Pound loses 10% against the Euro and 5% against the US $
If a US firm exports to the UK and, following Brexit, the British Pound loses 10% against the Euro and 5% against the US $
a. | The US firm will benefit from a potential arbitrage situation
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b. | The US firm may consider FDI in the UK as it will now be less expensive
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c. | The US will find it more difficult to find British partners for a potential joint venture in the UK
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d. | Exports from the US to the UK will be cheaper
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