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. Impact of a Weak Currency on Feasibility of DFI. Packer, Inc., a U . S . producer of computer disks, plans to establish a
Impact of a Weak Currency on Feasibility of DFI. Packer, Inc., a US producer of computer disks, plans to establish a subsidiary in Mexico in order to penetrate the Mexican market. Packers executives believe that the Mexican pesos value is relatively strong and will weaken against the dollar over time. If their expectations about the pesos value are correct, how will this affect the feasibility of the project? Explain.
Impact of a Weak Currency on Feasibility of DFI.
Packer, Inc., a US producer of computer disks,
plans to establish a subsidiary in Mexico in order to
penetrate the Mexican market. Packers executives
believe that the Mexican pesos value is relatively
strong and will weaken against the dollar over
time. If their expectations about the pesos value
are correct, how will this affect the feasibility of the
project? Explain.
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