Meltham Co. produces electrical equipment. The majority of its sales occur in the U.S.

Approximately a half of its expenses require outflows in Canadian dollars to pay for materials that

are sourced from there. Philippine pesos (to pay for Philippine materials). Meltham does not have

competition outside of U.S. firms that do not conduct foreign business. If the Philippine peso

strengthgens how will Meltham Co. be affected?